P1=Mother
P2=Son
P3=Son
Persons P1, P2 & P3 posses 4 houses H1, H2, H3 & H4 in JOINT names in City C1.
All 3 have equal shares because the property was belonging to Father and he died.
P1 & P2 live together in H1.
P3 lives in C2 (other city due to service).
H2 is given on rent for amount A2.
H3 is given on rent for amount A3.
H4 is given on rent for amount A4.
Rent Agreement is made in JOINT names of P1 & P3 and the rent amount (A2+A3+A4) is deposited in JOINT bank account of P1 & P3.
P2 does not get any share in rent amount because he do not want to get involve in any money matters.
All money matters like corporation taxes, house maintenances, etc are handled by P1 & P3.
P1 shows rent income as A2/2 + A3/2 + A4/2 in ITR.
P3 shows rent income as A2/2 + A3/2 + A4/2 in ITR.
P2 does not mention anything in his ITR.
Is this OK?
CAclubindia
