Tax calculation on reciepts from paying guests

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asifuddin ahmad (Querist)
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24 December 2011 My father is senior citizen and pensioner. He owns house and we started keeping PGs from this fy 2010-11.I along with my family stay with my parents.I and My father are taxpayers but my spouse is house wife and looks after paying guest arrangements.The house is in the name of father.Please answer following queries.
1- Is it possible to show this income on to my spouse to reduce tax.
2-How to split reciepts from pgs into expenditure incurred towards them and income.
3-What are the heads admmissible under expenditure.
4-All the payments are through cheque in the name of my wife.

Aijaz Shaikh

Aijaz Shaikh (Expert)
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25 December 2011 1) It is not possible to show the income in the name of your spouse.

2) Income from PG is in the nature of rent chargeble under the head income from house property.

3) Short Calculation:
Rent received-30% of Rent received

4) The income will be chargeble in your fathers return, since he is the owner of house.