Why is this being done?
HRA can be claimed by salaried individuals who pay rent for the house they live in. In cases where a person lives in a house owned by parents or other relatives, it is legally permissible to pay rent to them and claim HRA, provided the arrangement is genuine. The relative must be the legal owner of the property, rent should actually be paid, and the rent received by the relative is taxable in their hands if their net income is above the exemption limit.
