A salaried person can claim HRA exemption by paying rent to parents, if the former is staying with parents.
What is essential to claim HRA exemption? It is not essential to submit any document to the Income-tax department for claiming HRA exemption. However the employer must know about the rented accommodation along with rent receipts of every month, to claim exemption in Form 16.
While living within a house owned by parents, a rental agreement may be entered and monthly payment of rent may also be given. Rent receipts, have to be generated which will have to submitted to the employer to claim HRA exemption. However, the benefactor of the rent amount will have to disclose such rental income received in their Income-tax return as income from house property and pay tax on the same.