06 December 2013
I have joint property(Flat) registered on me and my mother. My mother is a pensioner. I have taken home loan with my mother as co-applicant. The loan EMI is getting deducted from my account every month. We gave that flat for rent. My mother and the tenant went for rental agreement and he is paying rent to my mother account. Can I claim the Loan EMI in my Tax returns and show the rental income in my Mother's Tax return?
06 December 2013
In my view this would not be possible. Clear case of tax avoidance. Best possible way would be that there should be proportionate income as well as proportionate payment of installments. You may pay it on your account but should receive it back from Mother.
CAclubindia
