Diversion of income

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achyuthanand

Audit executive/ CA Final

168 Points Posted on 09 March 2014

I am inherited with a residential property from my mother which is now being let out. However the rental income is enjoyed by my mother, and I have made an agreement for transfering the rental income for the benefit of my mother. Now do I need to pay tax under income from house property for such rental income? or is it my mother who have to pay tax?. Can u please refer any case law if any similar to this?

Thanks in advance

Replies (3)

Z

Tax Consultation (US and India)

2348 Points Posted on 09 March 2014

This is case of divergences of income with Over riding title hence it will not be treatedas your income but will be considered as income of beneficiary There are some case laws on this. For tds you should disclose this while entering into agreement otherwise tds certificate will be in your name so clear it in agreement itself

achyuthanand

Audit executive/ CA Final

168 Points Posted on 09 March 2014

Can you please give me the link to such case laws or give me link to the database where I can get such case laws?

thanks

Z

Tax Consultation (US and India)

2348 Points Posted on 09 March 2014

Am away from my system for a few days. It will take a few days but there are case on it one of it is from pgbp where partnership firm was supposed to give certain sum to wife of deceased partner for carrying on the profession of deceased . I hope others will be able to cite before I get to my system. But do give declaration to this effect at the time of making agreement