Arunachalam (Proprietor) (191 Points)
04 July 2025Can a father let out his commercial property to his son without taking rent in India?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(195552 Points)
Replied 04 July 2025
Yes, but ITO may add notional rent in father's ITR.
Arunachalam
(Proprietor)
(191 Points)
Replied 04 July 2025
Even if we have proper rental agreement stating no rent is considered for letting out? Still they may add notional rent? If so, what is the use of that agreement?
Arunachalam
(Proprietor)
(191 Points)
Replied 04 July 2025
Even if we have proper rental agreement stating no rent is considered for letting out? Still they may add notional rent? If so, what is the use of that agreement?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(195552 Points)
Replied 04 July 2025
Rent agreement without any rental charge in itself is not tenable if ITO finds any tax theft. Though the chances of any liable tax on notional rent are 50:50, still it cannot be totally avoided.
SUSHANT BIDAYE
(687 Points)
Replied 06 July 2025
I think you have a good case to argue that you have not collected any rent from Son.
The tax officer just can't determine notional rent without some evidence.
Giving rent free property to Son is tenable in law.
My views
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