Rented income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2013 We have joint commercial property (3 story S.C.O) in the name of 5 co-owners(me, my wife, elder brother, younger brother and sister in law), each having 20% share

For tax saving of my friend ,I want to show rental expense of my friend business, in lieu of rent paid for some portion of the above property, after consent of my wife(without consent of my blood relation).Kindly suggest

1. Is it legally viable to show that I have rented out my and my wife share(40 %) , from joint commercial property

2. If No, What can be best way to help my friend( i.e alternative way to show rental expense at same property)

3. If yes,all rental income should be in clubbed in whose total taxable income?Should I ask for cheque from my friend , to show in IT dept.?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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28 February 2013 It is advisable not to extend such help which may create dispute-

1. In your family.
2. In the Department &
3. Lastly, in two good friends.
.
Let out the property by entering into a rent agreement and with the consent of the owners of the joint property.
.

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Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2013 can i let out from my share i.e . 20% each me and my wife from our share of property and show the rent in both returns?

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