Please its important

This query is : Resolved

Arpit Agrawal (Querist)
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01 August 2014 we are 3 brothers after the death of our father we have opened a joint account in the name of three of us. Now the rent income recieved in the joint account from the house property should be clubbed in whose name? and what if we create a trust on name of our mother and show the income received on the trust!!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 August 2014 No need to club the income or to create a trust. The rental income can be shared equally by 3 brothers and mother there by you can reduce income tax if any.

Arpit Agrawal

Arpit Agrawal (Querist)
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02 August 2014 But wot if we want to create a trust in the name of our mother? will it be benificial?

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 August 2014 If you are going to utilize the rental income for charitable purpose create a trust.
If you are going to share the rental income, treat the house property under co-ownership, each one can avail basic exemption on the rental income. By this you can reduce the tax on rental income.