Fatwa: # 38120
Category: Business Matters
Country: India
Date: 28th April 2019

Title

Counting household expense as monthly rent to receive government benefits

Question

Assalam-u-alaikum I stay with my parents, the house is owned by them.

We live in a joint family. The members of our family are as below. 1. Parents. 2. Myself, wife and 2 kids 3. My brother, his wife. 4. My sister (Not married yet).

Currently I pay monthly 20,000 Rs to my mother to meet the household expenses. My brother also pays 15,000 to my mother for household expenses, this includes electricity charges, maintenance and other expenses etc.

My question is

1. From the monthly amount, can I consider part of the amount as house rent and claim house rent to get the tax benefit from the government. The other tenants are paying 11500 / Month as rent, can I claim the same amount as rent given to my parents to claim for tax exemption.

Please note, the rent collected from other tenants in the apartments is not taken by me, but it is all given to my parents.

Regards

Answer

In the Name of Allaah, the Most Gracious, the Most Merciful.

As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

When you give the Rs.20,000 to your mother, tell her the amount is for rent and other expenses. Accordingly, it will be permissible for you to regard the amount paid to meet the household expenses as your rent as well and thereby claim house rent to get tax benefit from the government.

And Allaah Ta’aala Knows Best.

Muajul I. Chowdhury

Student, Darul Iftaa

Astoria, New York, USA

Checked and Approved by,

Mufti Ebrahim Desai.

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