1. If someone rents a large house and further sub leases out a portion of it to a 3rd party, how should income from Rent be treated from the sub lease? Which schedule of the ITR should be used?
2. If the use of the house (not the house, but the use of the house) is given by owner A as a gift to a blood relative person B , and the person B sub-leases out a portion of that to an unrelated 3rd person C, how should B account for income received from C. It seems that Schedule HP for rental of house property is only applicable to owners? If B is responsible for upkeep, maintenance of house, and even pays property tax, then can B use Schedule HP to claim 30% deduction with respect to rental income? Does A need to do anything on their IT return with respect to this property?
Thanks
CAclubindia
