Dear Friends,
A company which is into EPC business wants to hire labour accommodation near the project site for which it has identified a multi-floor residential building which is owned by an individual. However, the individual is insisting that he wants floor-wise different rent agreements in his name and the names of his family members. Presumably, the landlord wants to save on income tax by not declaring the overall rent for the building as his income. However, TDS deduction on rent payable is acceptable to him. Legally, will the rent agreements is the names of his family members hold ground when the individual is the sole owner of the subject residential building. What could be other consequences ?
Regards,
K Venkatraman
CAclubindia
