Non resident assesse receiving rental income in parents name

This query is : Resolved

Chandan Dhanani (Querist)
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12 January 2012 Dear All,
My assesse is an NRI. When she was residing in India she purchased a house which she let out when she got married to foreign national. The rental agreement was made in the assessee mother's name as she was 85 years and had no other income source. We file the return in her name as she was the owner of the house property, had housing loan on that property. However the company who had taken house on rent deducted TDS in the name of mother. In computation of income we claim deduction of tds issued in the name of mother as she was only recipient of rent not the owner of house property. However assessing officer has denied credit for tds and has asked us to pay the tax.

Kindly suggest can we go in appeals to claim the credit for tds deducted and paid in mother's name.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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12 January 2012 The Income Tax Officer should assess the income in the hands of her daughter.

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His denial should be pertaining to rental income. He is making mistake by accepting the income in the hand of the mother. Second mistake is being done by him , is by accepting the income, he is not accepting the TDS deducted thereon.
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He is mistake at both the levels, and in appeal the case may be remanded back to the AO for assessing the income in the hands of the daughter.
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