Money transfers in family
This query is : Open
27 August 2018
Sir/Madam,
The son Mr A, who lives in london, regularly transfers amount of around 60000rs every month in his mother's bank account.
Amount is transfered to pay housing loan emi.
Housing loan is in their joint name.
But emi is deducted from mother's account.
And the property for which it is taken is lent out on rent.
How would the amount received from son every month be treated under income tax act?
What precautions to be taken while filing mothers tax return, considering she receives rent of that property being let out property?
Please guide.
The son Mr A, who lives in london, regularly transfers amount of around 60000rs every month in his mother's bank account.
Amount is transfered to pay housing loan emi.
Housing loan is in their joint name.
But emi is deducted from mother's account.
And the property for which it is taken is lent out on rent.
How would the amount received from son every month be treated under income tax act?
What precautions to be taken while filing mothers tax return, considering she receives rent of that property being let out property?
Please guide.
K Srinivas, CMA CS
(Expert)
27 August 2018
Money sent by her son will not fall under the tax
K Srinivas, CMA CS
(Expert)
27 August 2018
Is the house jointly owned? i assume so.
In that case, rent will be attributable to each - son and the mother , as per the extent of share in the house.
In that case, rent will be attributable to each - son and the mother , as per the extent of share in the house.
K Srinivas, CMA CS
(Expert)
27 August 2018
Since she doesnt pay the home loan, in practical aspect, she cannot claim deduction for EMIs paid on home loan
28 August 2018
Sir, house is not jointly owned. mother is the single owner.
Only housing loan is in joint name.
Will she not qualify to claim deduction of interest and repayment of principal since its paid from her bank account.
Thanks.
K Srinivas, CMA CS
(Expert)
28 August 2018
In my opinion, no tax benefits will be given since she doesnt pay from her contribution. There is a round about way, however. If the son sends her money for maintenance and she makes the home loan repayment out of it, benefits can be availed.
K Srinivas, CMA CS
(Expert)
28 August 2018
Kindly ensure that the son doesn't claim any benefits of home loan repayment as the property is not jointly owned
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