home lease
This query is : Open
05 March 2017
Dear experts,
A is a owner of a home and he is given to B on lease for 5 years, for this lease refundable amount is around 1,50,000. What is the income tax treatment to Mr. A and B? can we treat this lease amount as rent income to Mr. A and rent exepene to Mr.B?
Rupinder Kaur
(Expert)
05 March 2017
in my opinion, refundable amount is not income of recipient or expense of payee.
rather it should be categorized as asset and liability
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06 March 2017
Hi Rupinder sir,
I am convince with your openion. So both Persons are can't disclose this amount in income return. Suppose Mr.A is given same home on rent before to given on lease. if deprt will came after identify no rent income in a year by compare with rent income in previous years. how can we face?
I am convince with your openion. So both Persons are can't disclose this amount in income return. Suppose Mr.A is given same home on rent before to given on lease. if deprt will came after identify no rent income in a year by compare with rent income in previous years. how can we face?
Rupinder Kaur
(Expert)
06 March 2017
as per my interpretation of your query aount received is advance rent which will be returned to tenant when the agreement is terminated.
apart from that tenant will pay monthly rent which will be taxable under Income from House Property
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