Tax planning

This query is : Resolved

rohit (Querist)
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01 March 2014 A PERSON HAS HOUSE PROPERTY INCOME BY THE WAY OF RENT OF 3 STOREY BULIDING,
1 STOREY HE HAS KEPT FOR HIMSELF
2 & 3 STOREY HE HAS GIVEN ON RENT OF 16000P.M{8000 EACH], THAT IS 192000 P.A

NOW TO SAVE TAX ON 192000, IS IT POSSIBLE TO FORM A HUF AND SHOW THIS INCOME IN RETURN OF HUF, SO THAT HE IS NOT EVEN LIABLE TO FILE RETURN?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 March 2014 Rental income can only be shown in the HUF return if the property belongs to the HUF.

If YOU are the owner, then rental income CANNOT be shown in the return of the HUF.

Solution: Transfer the property to the HUF - however if it is transferred free of cost, then clubbing provision will apply.

rohit

rohit (Querist)
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04 March 2014 HOW CLUBBING PROVISION WILL APPLY

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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04 March 2014 The rental income will be included in your income and NOT in the income of the HUF.