Clubbing of Rental Income
This query is : Resolved
25 December 2021
1. There is joint commerical property owned by Mr and Mrs X . Mrs X wants to rent the property to an LLP for Rs 30000/- per month., wherein Mr X is LLP partner. ( Mrs X is not LLP Partner and is housewife having income tax Pan No). Will clubbing provisions of income tax apply in the hands of Mr X partner.
2) Whether TDS is to be deducted also.
2) Whether TDS is to be deducted also.
25 December 2021
Being Joint owner of the property, the rental agreement should be between both the owners and tenant. Just one owner cannot declare total rental income in his/her ITR.
25 December 2021
Ok, - Assuming that the rent is also split 50:50, does the wife's portion of rent will be clubbed alongwith the husbands income?
25 December 2021
No. There is no question of clubbing the rent income of husband, provided both have declared 50% rent in respective ITR.
26 December 2021
Sorry to bother, what happens to clubbling provisions if rent is entirely paid to wife, but rent agreement is made on both?
26 December 2021
As far as rental income is declared for assessment in equal shares, the part of rent received by wife (husband's share) will be treated as gift to wife. The gift amount is not clubbed directly, but any income earned over the gifted amount will be clubbed in Husband's hand.
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