Rental income split in 4 people joint owned property

Purpose of purchasing property is to earn rental income know. Then it comes under income from business and profession.

Your rental income per annum cross GST threshold limit of Rs.20 lakhs. You should register under GST.

For Income tax, You need to apply pan card and registered your rental services business under GST.

Renew all your tenant rental agreement in the business name. Issue rental receipts, your tenant can claim HRA. If they deduct TDS against your rental service business. TDS amount will be deposited in your business pan card account. You can account all your expenses to reduce your profit. 

Create a new bank current account for this business. Receive rent to this account and transfer to your housing loan EMI account.

At the End of year, you can share your income from business and file your income tax seperately and business. 

You can download or get interest certificate from bankers. Use this interest amount for your individual income tax deduction.

Then only you can solve this problem otherwise, one pan card shows huge income which is not actually earn. Rest of them earned income again taxable when you declare it in income tax return. 

Let me know your thoughts. I will share my suggestion. Thanks

Hi Saravanan,
Thank you soo much for the reply, But wouldn't the rental income gross be checked after dividing individually. 

Example:

P2 has 45% share and annually the rental income for them would be 14 lakhs which is below the threshold. Still should the GST registration required.

 

Hi Saravanan,
Thank you soo much for the reply, But wouldn't the rental income gross be checked after dividing individually. 

Example:

P2 has 45% share and annually the rental income for them would be 14 lakhs which is below the threshold. Still should the GST registration required.

Hi Dinesh,

In your point view, as an individual your income from property doesn't exceed GST threshold limit. But, purpose of purchase property is not for your personal use know. 

You have given one person pan card for rental agreement and TDS was deducted for that one Pan no know. Now, calculate whether he is liable or not.

Purchase an asset and renting by people is considered as business income.