For purpose of claiming HRA income tax exemption, I'm planning to pay rent to my NRI brother. His name appears, jointly with my father's, on property tax receipt of the house I live in Pune, India. My brother will show the rent received as 'income from house property' on his Indian IT returns and I will show the rent in my IT returns for purpose of HRA. What steps do my brother & I need to follow in this regard?
Sorry. Under this Forum, we only provide basic guidance on income tax related issues of individuals and not on tax planning.

However, kindly remember, when any person makes a payment to a non-resident, the payer has to deduct tax at source compulsorily if the amount being paid contains any income that is chargeable to tax in India in the hands of that non resident. You will need to deduct TDS at a rate of 30% from payments made to a non-resident brother under Section 195 of the I-T Act. Also since it is a joint property, you will have to consider various things.

It would be better if you consult a professional CA and do the needful as per his/her advice after disclosing all facts and figures.
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Ameet Patel Ameet N Patel is a chartered accountant and former President of Bombay Chartered Accountants Society - BCAS

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