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House property

Preeti (Article Assistant) (58 Points)

10 January 2013

Hi All,

I want an immediate solution to the following tax query.

A person who is a landlord receives rent in cash. How can he prove that he received those receipts on monthly basis??

Plzz guys..reply soon :)

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22 Replies

CA Ankit Totla (Practicing Chartered Accountant) (469 Points)
Replied 10 January 2013

cash transactions are not legal.

1 Like

kavitha (studying final) (830 Points)
Replied 10 January 2013

Originally posted by : CA Ankit Totla
	cash transactions are not legal.

CA ankit ji,
i didnt get what u said. can u elobarate??

kavitha (studying final) (830 Points)
Replied 10 January 2013

i think cash transaction are not illegal...

preeti,

if he has rent receipts then that will be sufficient... can u elobarate alittle??

Preeti (Article Assistant) (58 Points)
Replied 10 January 2013

Originally posted by : kavitha
	i think cash transaction are not illegal... preeti, if he has rent receipts then that will be sufficient... can u elobarate alittle??

Hi kavitha,

The main problem is that he doesnt hav any rental receipts for the rent received. The Assessing officer is not convinced with his arguments. so he doesnt hav anythng to prove it.

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 10 January 2013

Originally posted by : kavitha
	i think cash transaction are not illegal... preeti, if he has rent receipts then that will be sufficient... can u elobarate alittle??

This case is not a legal v/s illegal.. its a case of cash which can be shown or supressed (hide) in books......... if there are proper reciepts then it can't be hide....

Preeti (Article Assistant) (58 Points)
Replied 10 January 2013

Originally posted by : CA Lokesh Pokharna

Originally posted by : kavitha

i think cash transaction are not illegal...

preeti,

if he has rent receipts then that will be sufficient... can u elobarate alittle??

This case is not a legal v/s illegal.. its a case of cash which can be shown or supressed (hide) in books......... if there are proper reciepts then it can't be hide

....

The case is :

He has shown rental income as his income from house property but dint provide supportings for the same. Now the Assessing officer is asking him to provide the same and bcoz he received the rent in cash without any keeping any proof he is not able to convince the A.O. Now he looks forward to our help. Can we help him in any manner?

kavitha (studying final) (830 Points)
Replied 10 January 2013

Originally posted by : CA Lokesh Pokharna
	Originally posted by : kavitha i think cash transaction are not illegal... preeti, if he has rent receipts then that will be sufficient... can u elobarate alittle?? This case is not a legal v/s illegal.. its a case of cash which can be shown or supressed (hide) in books......... if there are proper reciepts then it can't be hide....

CA lokesh, i am just replying to the answer posted by CA Ankit !!!!

CA Krishna Chaitanya M (Chartered Accountant) (463 Points)
Replied 10 January 2013

no problem if it is taken in cash, but if tenant is doing any business on that property, giving rent to landlord any day in excess of rs 20000 in cash, then it is problem to tenant, receiver of rent has no problem

tenant agree with rent paid to landlord, there is no problem at all ( if there is no lease agreement between land lord and tenant)

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 10 January 2013

supporting of income not needed dear.. it can be said that rent received withour any documents ... for claiming expenditires there are always requirement of producing evidences....

Preeti (Article Assistant) (58 Points)
Replied 10 January 2013

He doesnot want to claim any expenditure. But still if the A.O has to be convinced, is there any way??

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 10 January 2013

Originally posted by : preeti
	He doesnot want to claim any expenditure. But still if the A.O has to be convinced, is there any way??

its okay if he dosent want toclaim any exp. deduction... a.o. will be convinced..

Nitesh Maheshwari (123) (104 Points)
Replied 10 January 2013

purchase a rent slip book .

& Making month Payment Wise Bills

if Payment is more than 5000 .Stick 1 Rs stam ticket also.

Nikhil Gupta (Student) (49 Points)
Replied 10 January 2013

what is the AO not convinced about?

if he is concerned about the amount of rent received then that is not a problem as we have fair rent and municipal value to counter that

if he doubts about the property being let out on rent, then pls tell what exactly he is saying

Phalgun (Audit Manager) (327 Points)
Replied 10 January 2013

Rental agreement wil serve. As it will contain the rent to be paid & even escalation clause for any hike in rent . In absence of rental agreement then Municipal Rental Value or Fair Rental Value Or Standard Rental Value as defined under rent control act might hold good.