Rental income

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This query is : Resolved

Manohar Reddy (Querist)

05 January 2017 Hi. My mother earns a rental income of 40k per month. can her 4 son's receive rent from tenants every month. Can all 4 son's file IT returns instead of her. she is uneducated and does not have PAN.

Pawan Kumar Sharma

Pawan Kumar Sharma (Expert)

06 January 2017 Rental income belongs to the person who owns the property. If her four sons, wants to show the rental income in there Return then i)firstly they have to enter into a rent agreement with there Mother giving a nominal rent and accomodating a clause in the rent agreement for 'subletting' and then entering into a sub-let rent agreement with the tenant

Manohar Reddy

Manohar Reddy (Querist)

06 January 2017 Thank you Pawan for your valuable suggestion. This property is let out from 6 months already. Can we do a rent agreement with my mother now. will it be an issue.

Pawan Kumar Sharma

Pawan Kumar Sharma (Expert)

06 January 2017 No Issue, just obtain the notice or the letter of termination of the existing agreement

Amol S Joglekar

Amol S Joglekar (Expert)

06 January 2017 The stake is of 480,000. Do take into account the cost of executing 4 agreements of LEASE, along with stamp duty, registration charges etc..... Dont try to do something only for the sake of it.
I think getting PAN of mother is more easy and economical too.

ALOK GOEL

ALOK GOEL (Expert)

06 January 2017 Total tax liability lies with mother ( hopefully she is owner of the house) . Only thing she can gift to son after that which will be non taxable to sons However , mother has to file return as receiving 48k in a yr.

ALOK GOEL

ALOK GOEL (Expert)

06 January 2017 Total tax liability lies with mother ( hopefully she is owner of the house) . Only thing is that she can gift to her sons which will be non taxable to sons after filing return. However , mother has to file return as receiving 48k in a yr.

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