Rent Payment to Brother

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2011 Hi,

I am residing in my brother house and paying rent to him every month, my brother is not in india, now he is settled in abroad, if the money will be deposited into his account, whether he is liable to pay tax.

Plz clarify me.

sankar R

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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03 March 2011 Liability of tax arises when his income exceeds Rs 1.60lacs (for FY 2010-11).

Without knowing the annual rent amount, his tax liability can not be ascertained.

However, the rent amount is taken subject to 30% standard deduction.

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