M. J. (Finance Professional ) (154 Points)
05 August 2014
Vishal Gupta
(CA)
(59 Points)
Replied 05 August 2014
As per Section 60 of the Income Tax Act, where there is transfer of income without transfer of assets, then the income arising out the such assets will be clubbed in the hands of the transferor(owner of the asset). So, in this case rent will be clubbed in the hands of Mr. A.
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 05 August 2014
Agree with Vishal
Rajiv
(Student)
(34 Points)
Replied 05 August 2014
Experts, is there a way Mr A can make a Lease agreement with Mrs B. on a very nominal amount of Rs 1000/- (per month). And Mrs B can do a sub-lease agreement with Mr C on the actual amount (let say Rs 50000/- per month).
Is this a valid way of arranging things?
-Rajiv
M. J.
(Finance Professional )
(154 Points)
Replied 05 August 2014
Alok A Bhavsar
(CA Final Student)
(82 Points)
Replied 06 August 2014
Sushil Kumar Pandey
(Professional)
(24 Points)
Replied 09 August 2014
CAclubindia
