Tax question

Hi Sapna,

Yes, the amount recd by you will be taxable as income from other sources, but, if the rent is actually paid to someone, including your relative, you will get a deduction under section 80GG of the Income Tax Act, 1961 of maximum Rs. 24000 per annum (2000p.m)

The tax will be in your grandfather’s hands, and has got nothing to do with the fact that after its receipt, he transfers the money to your brother.

Originally posted by : Ankit
	Hi Sapna,   Yes, the amount recd by you will be taxable as income from other sources, but, if the rent is actually paid to someone, including your relative, you will get a deduction under section 80GG of the Income Tax Act, 1961 of maximum Rs. 24000 per annum (2000p.m) The tax will be in your grandfather’s hands, and has got nothing to do with the fact that after its receipt, he transfers the money to your brother.

But the rent we are getting is a compansation and not income??? what if the builder would have given us accomodation till the new building is completed

SApna,

the question of taxation arises simply because you are gettin gmoney..

if he were to provide the accomodation, the question of he paying you wouldnt come and thus taxz would not come....

here, the case is different

Originally posted by : Ankit
	SApna, the question of taxation arises simply because you are gettin gmoney.. if he were to provide the accomodation, the question of he paying you wouldnt come and thus taxz would not come....  here, the case is different

But rent is not our income since the area where will live we need to pay extra to find accommodation and even pay tax for not earning anything. It is like reimbursement of rent paid.

Can you please allow me to send you a PM....