Hello,
We have a property owned, self-earned by my father and still is undivided. Pars of it will be rented out and will start receiving the rental income. So, in such case what are the legal and valid options in order to reduce tax to be paid by his children?
My thoughts
Option 1. Get the income in name of father, he will file ITR. The income then will be distributed as parental income to children on regular basis.
Options 2 : Get the rental income in names of daughter-in-laws (by doing Leave and lIcence agreement in their names) & file their ITRs.
Option 3 : Get rental income in names of children and file their ITRs.
So, are these options legally valid ? And what
1. what would be best option out of above ones?
2. What would be tax liability in each case for all involved (father, sons, daughter-in-laws)?
3. In the future, plan is to do gift deed from father in name of their daughter-in-laws, then gift tax
BR
Anil K
CAclubindia
