29 October 2012
My freind had leased Ground Floor (i.e. he will receive payment) of the house @ 16000 p.m. (which belongs to his father). I had advised him to pay back Rs. 10000, as rent to his father (for the same property).
Now my qerry is:
Can both claim deduction u/s 24 for Rental income?
29 October 2012
Income from house property is taxable in the hands of owner/deemed owner of the property. Owner is a person who is entitled to receive income from property in his own right. Income is chargeable in the hands of person even if he is not a registered owner. Rental income from sub-letting of property acquired on monthly tenancy basis or on lease for a period of less than twelve years may be taxable either as "Income from business or profession", where such letting is the business of the assessee or taxable as "Income from other sources". This would depend upon facts of each case.
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