ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In India, landlords can increase the rent amount by 10 percent after the lease expiry. However, this is usually at the landlord’s discretion. You can negotiate the rent increment terms before signing the rent agreement.

Detailed explanation-2: -A raise in rent should be done with a valid reason. For instance, a change in rent across the market, a raise after more than two years, expensive living standards, or due to maintenance and repair the apartment now needs. A landlord should notify you the reason of the rise.

Detailed explanation-3: -A revenue stamp is required to be affixed on rent receipts if cash payment is more than Rs. 5000 per receipt. If rent is paid through cheque then revenue stamp is not required. The rent receipts for all the months for which you are claiming HRA is required to be submitted.

Detailed explanation-4: -You can pay rent to your parents if you are staying with your parents. This should be done by transferring the money (rent) to their bank account or paying via a cheque. This way you will be able to claim your HRA deduction properly. Since rent is paid to owners, the property must be owned by your parents.