Sub letting income

supposse you are staying on rented property and u paying rent to your landlord.

now when u find some1 who will pay u rent then what is paid to u is subletting income.

hope u understood.

Hello Sir,

So can v used it as tax planning tool?
 

i guess for both the income is taxable for letting and for subletting its taxable.

i mean that one of my client owns a HP which can give rental income of Rs 12000.00 per month.

He is already in 30% tax bracket. So he does not want to show Rs 12000 per month as is rental income.

Can he now let out the property to his mother @ Rs say 5000 per month and his mother can further sublet the property to the tenant at Rs 12000.00 per month
 

What will be the tax implication?

yes this way it is allowed but then 2 seperate agreement must be made one with mother and son and other bet mother and the tenanat.

yes sir, the client will make two rent agreement on stamp paper. one with the mother and tthe other of mother with the the actual tenant. sir anything else required to be done?

A simple rent agreement is to be made? any other formalities?

no other then agreement there is no need for any other formality but pls dont call me sir....

AO can raise a question on this as it is designed to evade tax so AO may take higher rent on the basis of location, circle rates etc and may even impose penalty for evasion of tax u/s 271(1)(c) so take all the factors under consideration vefore making any agreement

for mother it will be income from house property only 

she cannot claim it as rent paid is not allowed under cal of income from house property as there is only 2 deduction allowed u/s 24.