Transfer of security deposit
14 October 2019
Please advise on the below case study.
Suppose I am an event manager.
I had paid for refundable deposit to use a property for 10 years alongwith my cousin, like a monopoly right. Now I am no longer using the property. Please suggest a process to transfer the same to my cousin and how should I get my money from cousin. Will there be any tax implication in my or my cousin's hand? Thanks in advance.
15 October 2019
Refund of security deposit is not income and hence no tax is to be paid in your hands. Transfer of security deposit in your cousin's name could be in the nature of receivable. In such a case you can get back the money from your cousin through banking channel. I would suggest you enter into a tripartite agreement before executing the transaction.