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Rent and clubbing of income

cds (salaried employee) (29 Points)

17 April 2015

I am a salaried employee and have purchased a shop. My wife is unemployed and does not have any income of her own. So she wants to start a business in the shop. She is going to pay me rent for using the shop. I have 2 questions:

1. Can I rent the shop to my wife ? If yes, do I need to have a rental agreement for the same ?

2. Other than adding the rental income, will my wife's business income from the shop be also clubbed with my income ?

Thanks & Best Regards

cds

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3 Replies

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 17 April 2015

Hello, In 1 question :

Yes, you can give the shop to your wife on rent & make rental agreement.

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 17 April 2015

In question 2

Business me capital kon invest keya hai us par depend karta hai
Agar wife own investment ki hai to clubbing provision not apply.

If husband invest keya hai to clubbing provision apply.

CA VIRAL SANGHVI (Finance head) (681 Points)
Replied 18 April 2015

1. Can I rent the shop to my wife ? If yes, do I need to have a rental agreement for the same ? Answer : you can surely give shop to your wife and take rent as Income. to Prepare rent agreement or not is depends on you. 2. Other than adding the rental income, will my wife's business income from the shop be also clubbed with my income Answer : If money is invested by you than Income from business is clubbed otherwise not.