A social media post about a Bengaluru IT employee's tax-saving strategy has sparked a heated debate online, with some users calling it smart financial planning and others warning that it could backfire.
The discussion began after X user Pratham Khanna shared an example involving his friend, who reportedly earns Rs 18 lakh per year and receives a House Rent Allowance (HRA) of Rs 30,000 per month from his employer.
According to the post, instead of buying a home in his own name, the employee's wife purchased a flat using her savings along with a home loan. The husband then pays Rs 25,000 per month as rent to his wife through bank transfers.
Khanna claimed that the arrangement offers multiple benefits. The husband can claim HRA exemption, potentially reducing his taxable income, while the wife receives rental income and can take advantage of the 30% standard deduction available on rental earnings. The property also remains within the family.
"Same house. Same family. Different tax outcome," Khanna wrote, adding that understanding taxes, assets and ownership can be just as important as earning money.
However, not everyone was convinced.
