11 Tax-Saving Strategies Indian Middle Class Overlooks (Practical Steps for 2025)

4. HRA Optimization — Claim Smartly Even with Family Property

House Rent Allowance is a lifeline for many salaried people who live away from their family home. A common myth is that you can’t claim HRA if your family owns a house; that’s not always true. If you actually pay rent and live in a different city for work, you can claim HRA even if parents or a spouse own a property elsewhere. Some families formalize a rent arrangement with relatives; a simple rent agreement and consistent receipts make this claim valid. For people who both own a home and pay rent elsewhere, carefully documenting who pays rent to whom and why is essential. Keep rent receipts, a stamped rent agreement if possible, and bank transfers or cheques as proof. If your employer requires a landlord PAN when annual rent exceeds a certain threshold, provide it. Small paperwork habits — a monthly receipt, clear rent dates, and a simple rental agreement — can unlock thousands in tax relief over years.