Tax on Rent receipts

Dear Sirs,

I have a question and, this is the scenario:

1) Rent agreement is for - 40,000 per month
2) Rent agreement is unregistered
3) Rent is received via bank transfer- 40,000 per month i.e. without deducting TDS
4) Owner is salaried
5) Tenant is not deducting TDS
6) Tenant is salaried and he is claiming HRA from his employer, but not giving owner's PAN (using someone else's PAN)
7) Tenant is mentioning
narration as "Rent" while doing NEFT transfer to owner

*Question- Is owner liable to pay tax on rent received?
If yes, then how can owner avoid paying tax

Request if someone can help.

Thank you

Replies (4)
Quick Summary
This discussion explores the tax implications of receiving rental income in the UK. The owner receives £40,000 per month via bank transfer for an unregistered rent agreement. The tenant claims HRA but uses an incorrect PAN. The core questions revolve around whether the owner is liable to pay tax on this rent and how to potentially avoid it, with suggestions including declaring the income, considering tax implications if total income exceeds the basic exemption limit, and noting the difficulty in avoiding tax on rent.

Owner have to show rent in come on income tax return 70% of rent is taxable....

Thanks for your reply

Any suggestions to avoid tax?

If tenant does not put narration as "Rent" in NEFT transfer, can we avoid tax then?

Tds not Applicable here. if total income of owner exceeds basic exemption then he need to pay tax. if u wish to show income of 40k by any name then tax Applicable. if u show loan then no tax.
@ sahil


clarify this
1. rent agreement under leave and license agreement
2its difficult to avoid tax on rent by the owner.
rent receipt should be in super senior citizens name.
3. insist on the original pan of the owner.
4. how can the tenant claim rent?
5.claim hra exemption.
tenant can get a demand notice.

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