Hello
Please guide me about how sub letting income can be earned.
Thanks
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 07 June 2014
supposse you are staying on rented property and u paying rent to your landlord.
now when u find some1 who will pay u rent then what is paid to u is subletting income.
hope u understood.
akanksha
(CA Final Student)
(325 Points)
Replied 07 June 2014
Hello Sir,
So can v used it as tax planning tool?
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 07 June 2014
i guess for both the income is taxable for letting and for subletting its taxable.
akanksha
(CA Final Student)
(325 Points)
Replied 07 June 2014
i mean that one of my client owns a HP which can give rental income of Rs 12000.00 per month.
He is already in 30% tax bracket. So he does not want to show Rs 12000 per month as is rental income.
Can he now let out the property to his mother @ Rs say 5000 per month and his mother can further sublet the property to the tenant at Rs 12000.00 per month
What will be the tax implication?
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 07 June 2014
yes this way it is allowed but then 2 seperate agreement must be made one with mother and son and other bet mother and the tenanat.
akanksha
(CA Final Student)
(325 Points)
Replied 07 June 2014
yes sir, the client will make two rent agreement on stamp paper. one with the mother and tthe other of mother with the the actual tenant. sir anything else required to be done?
A simple rent agreement is to be made? any other formalities?
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 07 June 2014
no other then agreement there is no need for any other formality but pls dont call me sir....
akanksha
(CA Final Student)
(325 Points)
Replied 07 June 2014
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 07 June 2014
AO can raise a question on this as it is designed to evade tax so AO may take higher rent on the basis of location, circle rates etc and may even impose penalty for evasion of tax u/s 271(1)(c) so take all the factors under consideration vefore making any agreement
akanksha
(CA Final Student)
(325 Points)
Replied 07 June 2014
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 07 June 2014
for mother it will be income from house property only
akanksha
(CA Final Student)
(325 Points)
Replied 07 June 2014
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 07 June 2014
she cannot claim it as rent paid is not allowed under cal of income from house property as there is only 2 deduction allowed u/s 24.
akanksha
(CA Final Student)
(325 Points)
Replied 07 June 2014
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