Rental income

Question BankCategory: Income TaxRental income
Kollipara sundaraiah asked 3 weeks ago

Assess rental income received from own property Rs:1 lacs per month shown  in rent agreement.
But Rs:25,000/- amount Assess own bank account credit.remaining balance amount Rs75,000/-(3 members x25,000) Assess relatives bank account credit per month.
Question:
1.rental income Assess relatives bank account credit allowed in I.t. act.
2.assess rental income Rs:3 lacs or Rs: 12 lacs yearly shown in I.t return filed.

1 Answers
Rabindra answered 3 weeks ago

Rental Income of assessee will be taken as 12 lacs for IT return. 
Reason:-
If House property belongs to Mr A and rental income is Rs. 100000 per month being Rs. 1200000 p.a. This rental income is earned by assessee and it is taxable in the hands of Mr. A. 
Mr. A may have instructed the tenant to transfer the rental income in the bank account of any relative of Mr. A. But this will be treated as transferring a income after having it and Mr. A is liable to pay tax on full rent. 
If a person receiving the rent is not the owner of the property, then rental income is not charged to tax under the head “Income from house property” (E.g. Rent received by tenant from sub-letting, income from sub-letting is taxable under the head “income from other sources”)
But in your question, income is already earned and then transferred to relatives then it is taxable in the hands of owner of property. 
 

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