Income tax on rent recived by tenant by subletting

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A Jain (Querist)
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06 December 2016 This is a question regarding the Income on house property. Person A lease his house H to his mother B. A doesnt lives in house H, but B lives in that house. There is nominal lease amount X. Now B gives part of the house H to grandson C on rent. C pays a hefty amount Y of rent to B. Now if B shows the income by rent Y under other income head while filing the tax, is their anything wrong? A will file income from property head for amount X only. in no way A is liable to pay tax for rent Y. correct? Also is it necessary that lease be made for more than 12 years between A and B, cant it be just rental agreement between A and B for house H.

CA Suresh Jain

CA Suresh Jain (Expert)
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06 December 2016 Income in hands of A is Income from House Property But in the hands of mother it is Income from other sources as she is not the owner of the House Property