House property income - urgent

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2013 If an assesse who is the owner receives rent on house in his name, but the rent on furniture is recived by his parent by cheque in parent's name, as the furniture is provided by the parent. Can the parent claim this as his income from other sources?
The parent is not dependent on the assesse.

Ganeshbabu K

Ganeshbabu K (Expert)

12 June 2013 yes..it is income and taxable under head income from other sources in the hands of recipient..

Thanks& regards
Ganesh babu k

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

12 June 2013 So, assesse can take house rent as his income from house property and parent can take the furniture rent as income from other sources?
The provisions of composite rent wont apply?

Ganeshbabu K

Ganeshbabu K (Expert)

12 June 2013 in your case it is not "composite rent"

Composite rent:-

When the owner of the building gets along with the rent of the building, rent or hire of other assets (like furniture) or charges for different services provided in the building (e.g. charges for security, lift, air-conditioning etc.), the total amount so received is called ‘composite rent’.

As you said hire of furniture is received by parent..and he is not the owner of building..So i don't think it is composite rent.

Thanks & regards
Ganesh babu k

Message likes : 1 times

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