If a person has purchased some property in his and her mother's name (money expenditure by that person) and wants to rent out the property. Can he take the whole rental income in his mother's account. How will it be taxed? And how to show rental income in ITRs? Can mother show full rental income in her ITR only.
Please clarify.
No. If the property is jointly owned, both must disclose their respective shares in their ITRs.
If a property is purchased in both the person's and their mother's names, the rental income must be taxed according to each co-owner's share of ownership, regardless of who actually receives the money. The entire rental income cannot be shown in the mother's ITR alone unless she is the sole owner; otherwise, each co-owner must report their respective share in their own income tax return (ITR).
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