Hra

This query is : Resolved

Praveen CP (Querist)
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21 November 2013 Hi , can someone suggest me on this issue ?

To plan my taxes , i am planning to pay my mother monthly rent of 7500 by actually transferring money to her back account. She has nil income. But the property is in my father's name. Would my transaction attract clubbing of income provision in my father's hands ?

Also is it mandatory for the property to be jointly held by my mother to get into a rent agreement ?

If property is jointly held and if clubbing provision is attracted , would the rental income be prorated in their hands ?

We live under the same roof.

Regards

Praveen

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 November 2013 yes. it would attract clubbing in your father's hand. If property is solely in your father's name, no matter whom you pay, it would get clubbed.

If it is in joint name, the rent should be divided in the ratio of your parent's interest in the property. In absence of any explicit interest it can be 50:50. However, clubbing may still apply if your mother didnt contribute to the cost of such property.