Let out property to be shown in huf or individual a/c

There is an immovable residential property which has been given gift by a mother to her son and daughter in law jointly.

so it will be shown in their personal returns..

But rent from the same  is being shown in Son's HUF

this is not the right way..

what will be the right way to show the same??

 

Replies (1)

Sometimes the property consisting of buildings or the buildings and lands appurtenent thereto is owned by two or more persons, who are known as co-owners. In such cases if their respective shares are definite and ascertainable then the income from from such property or part thereof shall be first computed as if this property /part is owned by one owner and thereafter the income so computed in accordance wuth sections 22-25, shall be apportioned amongst each co-owner as per their definite share.

 

If the shares of the co-owners are not definite and ascertainable then they shall be assessed to tax as an AOP in respect of such property.

 

In your case the income should not assessed to tax in the hands of son's HUF.

Regards,

Shraddha

 

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