Income tax on rent recived by tenant by subletting

A Jain (Private) (9 Points)

06 December 2016  

This is a question regarding the Income on house property.  Person A lease his house H to his mother B. A doesnt lives in house H, but B lives in that house. There is nominal lease amount X. Now B gives part of the house H to grandson C on rent. C pays a hefty amount Y of rent to B. Now if B shows the income by rent Y under other income head while filing the tax, is their anything wrong? A will file income from property head for amount X only. in no way A is liable to pay tax for rent Y. correct? Also is it necessary that lease be made for more than 12 years between A and B, cant it be just rental agreement between A and B for house H.