Who will pay tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2011 Dear Experts,

With all respect, I would like to ask 1. if we take the home on lease basis and for example we are paying 5 lakhs as lease amount which we will receive back after end of 5 years, now who will pay tax on that 5 lakhs. and how much?
2. if we give a loan to a person of Rs. 5 lakhs, who will pay tax the giver or the receiver, and how much ?

Please resolve the query.
Regards

Thanks in Advance.

sai swaroop munaga

sai swaroop munaga (Expert)
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06 April 2011 Dear Friend,

Your question is very vague.

i. First check, whether you are paying the lease rent or Lease advance.

As per your question, we will receive back the amount paid. So, the amount paid will be in the nature of Lease Deposits. So, It does not attracts the Tax.

ii. For Loan transactions, tax will not attracted as it is not a income.

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2011 Dear Sir,

First of all sorry for the vague question,
It is like this
Instead of paying of rent we thought to take the home as lease basis and we gave 5 lakhs as an advance (according to the owner if we will give this advance then no need to pay rent) to the owner of the house so here this money is going out from us and will be receiving after 5 years. so is this income for owner of the house, and is this expense for us.
can we show it as assets in our books of account and will we have to pay tax on this amount.
2nd question was like for example we are giving a sum of5 lakhs to our relative and we are showing that this is the loan given to the person so will we have to pay tax on this amount, will the receiver of the loan pay the tax( i think this is the liability for the receiver so he will not pay any tax on this amount). now my question is when this amount will attract tax, will it attract when we(loan giver) will receive this amount back

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