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Rent transfer to huf

Rakesh (Manager) (75 Points)

16 August 2018

Hello,,

I am receiving rent income from my father property through cheque. Can i transfer that rental income to my HUF and show that as HUF income and not club in my salary income. The property is on the name of my father and his 3 brothers and all are getting equal rent. Cheque of my part is received in my name.

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10 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160570 Points)
Replied 16 August 2018

Is your father alive?

If no, you can do that.

Rakesh (Manager) (75 Points)
Replied 16 August 2018

My father passed away. But rent agreement includes my name and hence cheque is given on my name and not HUF name. HUF is mine i.e. me, my wife and kids. That means i can transfer the received amount in my account to my HUF account through cheque and need not to include in my salary income?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160570 Points)
Replied 16 August 2018

You should get cheque in HUF favour, for that may be you will have to get rent agreement altered.

1 Like

Rakesh (Manager) (75 Points)
Replied 16 August 2018

Thank you sir for you quick reply. Just last thing, as it is new agreement and may not be able to alter till next year as multiple people are involved. Will it be advisable to continue to recieve the amount on my name and than I transfer that amount from my account to HUF account through cheque.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160570 Points)
Replied 16 August 2018

You may request to your tenant, if they issue cheque in HUF name, it will be safe bet. Otherwise it will be disallowed by tax officer. Secondly, you will be required to get transfered your share in the property to HUF PAN, and not individual account. If already trasferred to you individual name, no more chance.

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Poonam (physio) (27 Points)
Replied 03 May 2019

Hi sir,

Me and my wife owns a flat, it is in joint ownership.

Currently loan is going for the flat in question here.

I am planning to rent out the flat.

Can i take the rent for the said flat in the name of HUF?

Regards,

Kundan

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160570 Points)
Replied 04 May 2019

No.

HUF is all together different identity, and any transfer of such income/s is not permissible.

Moreover in your case, you are already getting loan interest benefit over the flat, so where is the question of tax saving?

Poonam (physio) (27 Points)
Replied 04 May 2019

Thanks Sir for replying.

Then i need to show rent received as rental income right, I thought that is taxable and I wanted to save tax on rental income.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160570 Points)
Replied 04 May 2019

Yes, its taxable, but due to home loan interest payment, you will be at advantage when its rent out. You both can claim full deduction of interest paid (subject to limit of rs, 2L under head HP) against rental income.

As such your tax liability may not increase.