Dear Sir/Madam,
I have query regarding income from parental property. Can I show rental income in my income tax return if the house or property is in the name of my parents. Till how much amount TDS is not applicable with respect to income from rent.
I Agree With Raja PM. as the property is not in your name, you cannot show any kind of income araised from that property in your income tax return.
The legal owner of the property shall be charged Income tax on the rental income from the property under Income from house property. If the property is in your parents name, and if you dont have a share of ownership, it should be decalred in the ITR of parents.
Limit for TDS is if rental income is more than Rs.180,000 per annum, then TDS u/s 194I at 10%
if the Rental income per month is more than Rs.50,000 then TDS shall be deducted u/s 194IB at 5% on the last month of the tenancy or last month of the year, whichever is earlier. This is applicable inspite the assessee being audited u/s 44AB.
Mr GURDEEP
IF PROPERTY IS REGISTERED ON YOUR PARENTS NAME THAN THEY ARE REGISTERED OWNER OF PROPERTY & INCOME FROM SUCH PROPERTY SHALL BE CLUB & TAX WITH YOUR PARENTS INCOME ACCORDINGLY.
HOWEVER, FOR ANY GENUINE EXPEDIENCY, YOU CAN TRANSFER THE PROPERTY ON YOUR NAME BY GIFT DEED, THAN YOU CAN TAKE THE RENTAL INCOME UNDER YOU ITR, ALTHOUGH THIS SHOULD BE FOR GENUINE PURPOSE & NOT TO CURB / REDUCE YOUR PARENTS TAX LIABLITY.
AS FAR AS TDS IS CONCERNED.. INDIVDUAL WHO IS REQUIRED TO GET AUDIT U/S 44AB, REQUIRED TO BE DEDUCTED TDS WHILE PAYING RENT Rs 1.80 LAC OR ABOVE DURING THE YEAR U/S 194 I @ 10% IF PAN IS AVAILABLE OR @ 20% IF PAN IS NOT AVAILABLE . ALSO INDIVIDUAL WHO IS PAYING RENT 50K OR ABOVE P.M SHALL ALSO BE REUIRED TO GET DEDUCT TDS WHILE PAYING RENT IRRESPECTIVE OF AUDIT U/S 44 AB.
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