13 March 2017
I have a query, can a father let his property to his son and son sublets it for commercial purpose to third party and this way both father and son save tax as total rental income gets divided between father and son, please suggest/give openion.
13 March 2017
Father can let out his property to son, which is income from H.P.
sublet by son is allowed but treated as income from other sources.!!! no deductions allowed.
13 March 2017
Thanks Girish, so basically your answer is yes, income and hence income tax will get divided. Further, does it require that rental income charged by father (owner) to son ( lease) should be near market rates ( arms length )
14 March 2017
The value shall be calculated as per IT act. First calculate a)Municipal value, b)fair rent c)std rent d)actual rent.
Higher of a and b = x
lower of x and c = y
higher of y and d = annual calue.
CAclubindia
