Tax obligation for a sublease agreement

You could actually have such an agreement and it could be worthwhile as well. It may help you save taxes. 

You father first lets it out to you and your brother and later u let it out to the client. For your father the rent he charges from you will be income from house property for which he will get 30% standard deduction. 

For you sub renting becomes income from other sources against which you reduce the rent you are paying it to your father. Further you could also deduct expenditures you might have to incurr on the building in the future as well. You need to compute the cost benefit ratio and take decision accordingly.

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If you two brothers are not the owners of the property, you cannot enter into rent agreement with the third party acting as a landlord. Your father is the owner and landlord for renting purpose.

You may enter into rent agreement with your father who will lease you the property for a meagre sum, and in turn, the leased property is further subleased to a third party by you entering into rent agreement with the third party. Rental income of your father shall be taxed under the head income from house property, and for both of you, income from other sources. Your father may claim 30% deduction but you two brothers cannot.