Current house is owned by my dad.?
I am not a tax expert so it better to consult one. Your father cannot do a lease agreement with your mother. AFAIK. If your mother is co-owner (and from your question it appears that she is not), you can lease from your mother (but you can't). Law will not accept such a lease. Also note Income tax department makes no difference between lease and rent for tax purposes both are incomes. It also appears that you don't wish to lease from your father because he is a tax payer already. My sincere advise is cough up and pay the tax. If tax fraud is discovered, the repercussions will be much worse.