Both i and my wife jointly own a house. Can we give the house on a nominal rent (amount X)to my father, who in turn sublets the house on rent(amount Y,Y>X)? If that 's the case, whether the amount Y will be taxable under our income? or only X will be taxable?
IN Income Tax Actual rent is not taxed but the rent which could have been earned by letting the property is taxable. If Assessing officer finds that this Property can fetch higher rent then he can add the higher amount of rent in your Income.
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