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Rent can be received in HUF account?

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Hitendra Panwar

21 Points Posted on 26 November 2019

hello sir/madam

1)my mother purchased a property and she wants a rental income from the bank in Huf account for tax concession.

2)and also there is another tenant (united India insurance company) rent shall include in huf account , whose agreement is all done on just 100rs stamp paper.

Is that possible with the above two cases?

Replies (1)

If property owner is mother then rent income from bank and United Insurance will be taxable in the hands of your mother only.

TDS certificates will also be in the name of your mother.

Rental income transferred to HUF A/c will be treated as a gift to HUF (to relative) and no more concession in so far as rent income is concerned.