Mr.A's wife is B. Both are senior citizens. B acquired house property out of her own income. She has not let it out. After retirement she is having paltry income through tutions well within Tax limit.
Now husband A has sold his house to a third party. Both are moving to B's (wife's) house and the husband intends to pay rent of Rs.15000 per month and a Repayable Advance of Rs.90,000/- to his wife.
What are the implications from the tax point of view?
1) Will the rent paid to his wife can be taken as her income and subjected to tax ?
2) Should TDS apply in this case ?
3) Or the rent paid to her will be treated as Gift and included as income of the husband.
4) For the rental paid, whether Husband can take appropriate tax benefits ?