Rent to mother

A/c entries 361 views 4 replies

I am running an office and the building is in my mother's name.Being old age my mother wants to transfer the building to my name but she says so long as she is alive i have to pay her the rent.Is it legally possible to enter into an agreement to pay her the rent and show that rent in my books as expense.

Replies (4)

Yes, it can be done.

The Income Tax allows us to deduct reasonable and justifiable expenses from our Income. However, when the payment for some expenses are made to relatives or persons who have substantial interest in your business or profession, such expenses may not be allowed to be deducted if they seem excessive or unreasonable.A relative has been defined in section 2(41) of the Income Tax Act 

Dear Manish Ji Would you please elaborate how it should be done? Should i  make an aggreement on a stamp paper that i have to give rent even though the proprty is inherited to me.or it will do verbally and i can claim expenses of rent. 

Originally posted by : HS Narang
I am running an office and the building is in my mother's name.Being old age my mother wants to transfer the building to my name but she says so long as she is alive i have to pay her the rent.Is it legally possible to enter into an agreement to pay her the rent and show that rent in my books as expense.

 

I missed the ownership transfer point. No, you cannot claim the amount paid. It would not be qualified as rent because you'll become the legal owner of the property. That would be your personal expense.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 12 March 2026
Customer Relationship Executive

TAXLET

Calicut

B.Com

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details