Transfer of security deposit
This query is : Resolved
Preeti Muthreja
(Querist)
14 October 2019
Dear Experts,
Please advise on the below case study.
Suppose I am an event manager.
I had paid for refundable deposit to use a property for 10 years alongwith my cousin, like a monopoly right. Now I am no longer using the property. Please suggest a process to transfer the same to my cousin and how should I get my money from cousin. Will there be any tax implication in my or my cousin's hand? Thanks in advance.
Regards,
Preeti
Please advise on the below case study.
Suppose I am an event manager.
I had paid for refundable deposit to use a property for 10 years alongwith my cousin, like a monopoly right. Now I am no longer using the property. Please suggest a process to transfer the same to my cousin and how should I get my money from cousin. Will there be any tax implication in my or my cousin's hand? Thanks in advance.
Regards,
Preeti
Darshan Jain
(Expert)
15 October 2019
Refund of security deposit is not income and hence no tax is to be paid in your hands. Transfer of security deposit in your cousin's name could be in the nature of receivable. In such a case you can get back the money from your cousin through banking channel. I would suggest you enter into a tripartite agreement before executing the transaction.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Employee secondment
- IMS (import of goods) ITC related
- Applicability of tax on invoice
- Advances to related party
- GST ITC as per notification 12/2023- central tax
- Urd purchase entry in tally prime
- Form 144 TDS Return Validation Error – Mandatory Fields
- GSTR9 Annual Return
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Ito add credit side of bank
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
