Car Rent paid to Father

This query is : Resolved

Rajesh Bajaj (Querist)
Follow

14 January 2008 Dear sir

Please clarrify me that if Son Paid CAR RENT to Father and use the car and father Shows car rental income in his income tax return
Can they do this as per income tax

Rajesh

shipra walia

shipra walia (Expert)
Follow

14 January 2008 yes both are separate individuals in the eyes of law and have their separate returns to be filled as long as son is paying the rent for usage and the father is showing his income it is allowable as an expense to son as rent paid and income of father as Income from other sources or business Income of hiring of car.

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
Follow

15 January 2008 if car is in the name of father then the father will give a car on rental basis and son eill get exp.in his a/c if total payment is in excess of rs. 50000.TDS should be deducted if tax audit is applicable to the indivudal

Amit Sharma

Amit Sharma (Expert)
Follow

15 January 2008 Yes it can be done. Explanation perfect by Shipra Walia.

CA Anil Jain

CA Anil Jain (Expert)
Follow

16 January 2008 wat in case of wife and husband?

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
Follow

17 January 2008 In my opinion:-
There is no bar on having such business transactions with relatives. The only point to be kept in mind is that the consideration pid and received should be reasonable and should not deviate marginally with market rate.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now