Rented income

Others 323 views 2 replies

rahul

B.Com

31 Points Joined February 2013

We have joint commercial property (3 story S.C.O) in the name of 5 co-owners(me, my wife, elder brother, younger brother and sister in law), each having 20% share

For tax saving of my friend ,I want to show rental expense of my friend business, in lieu of rent paid for some portion of the above property, after consent of my wife(without consent of my blood relation).Kindly suggest

1. Is it legally viable to show that I have rented out my and my wife share(40 %) , from joint commercial property

2. If No, What can be best way to help my friend( i.e alternative way to show rental expense at same property)

3. If yes,all rental income should be in clubbed in whose total taxable income?Should I ask for cheque from my friend , to show in IT dept.?

Replies (2)

CA Prashant Gupta

DGM (F & A)

14068 Points Joined July 2007

you can give some part of property on rent, there is no prob

you can get rent in cash or cheque, you told 20% part each to you and your spouse. then you both will get equal share. it is advisable to show this in your income tax return of both.

rahul

B.Com

31 Points Joined February 2013

Originally posted by : CA Prashant Gupta

you can give some part of property on rent, there is no prob

you can get rent in cash or cheque, you told 20% part each to you and your spouse. then you both will get equal share. it is advisable to show this in your income tax return of both.

under which section i can file this as when i concerned with advocate he is saying there must be consent of other co-owners and the rented income must be divided in all members that is five co-owners so how can i justify