Husband with his own funds have bought a commercial property and have got it registered in both his name and his wife's name. This property is leased out to a 3rd party and rental income is shared between husband and wife in the ratio of 4:3 resp. Both husband and wife files their taxes separately.
Now lease with 3rd party is expiring and the premises is getting vacated, wife wants to start her business (wife's sole proprietorship) in that premises.
1. Can she pay rent to her husband and show the same as business expense? Can husband treat the same as his income from house property? Is there any chance of clubbing?
2. Can wife also employ her husband and pay salary as well? Any chance of clubbing?
