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Income from House Property

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Ashwath Kumar Makam

4 Points Posted on 16 August 2020

Dear Forum Members

I Have a query, hope to find solution from the forum.

We are Four Brothers, Two of us are Resident Indians & Two are Overseas Citizens of India. we brothers are constructing a Building comprising of commercial spaces & residences on a plot gifted my Father to all 4 of us.

Now my query is, being 2 of us are resident Indians & other 2 are OCI card holders, what are the tax implications pertaining to income generated from the property, I heard that if the property is in the joint name, the return as to be filed jointly. (The building is in construction stage & no income is generated as yet.)

Please, guide me how to go about regardingly, as Residential Status are different.

Also, please let me know if OCIs can apply for TAN & deduct TDS for amount Paid to Contractors,

Thanking in Advance.

Ashwath.

Replies (2)

Quick Summary

Four brothers, two resident Indians and two Overseas Citizens of India (OCIs), are developing a commercial and residential building on gifted land. They are seeking advice on the tax implications of income generated from this property, especially concerning different residential statuses and joint ownership. They also want to know if OCIs can apply for a TAN and deduct TDS on contractor payments.

CA Raj Doshi

Practising CA

8954 Points Posted on 16 August 2020

Apply for a PAN as a Body of Individual / Partnership Firm. The gifted land shall become the capital and comply with all applicable laws and compliances viz TDS, RERA etc. Payment to Non-Resident Partners even by way of a book entry shall be subject to applicable TDS u/s 195.

Regards
CA. Raj Doshi