Faking HRA

If you're paying rent to your parents - you're not faking an HRA claim. The logic for HRA is that if you pay income tax on an amount of money, then pay it to a landlord (whoever) and they pay income tax on it, it's double taxation. So if you're paying your parents rent, and they're declaring that as part of their income, you're not faking anything in your HRA claim, because it's a legitimate claim.

I would like to shift your perspective a bit and not call this "faking" As per the IT Act, if you declare rent of less than one lakh per year (8333 per month) you do not have to provide your landlord's PAN details. Which means the IT dept does not know whom that rent is going to as income. This is a provision and not a loophole. Therefore it isn't faking If you declare rent of >1LPA, then you will have to provide landlord's PAN details. It will reflect in the Landlord's Income tax portal as income to them. If either of your parent has <2.5L per annum as income, you can quote that you are paying them rent. And they will then not have to pay taxes Again - this is not faking. It is a provision under the IT Act

@PotatoPooper I can't reply to my own comment because this app is still pretty buggy - but your situation is still completely legal, no faking going on. You are paying rent to your parents, who own the property you are residing in, therefore you can claim HRA. What income level your mom has and how much tax she pays at the end of the day is immaterial to your own calculations.