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rental income taxation
one NRI (owner of commercial building) executed power of attorney in favour of his son and now rent is being received by that son please tell me in whose hand that rental income would be taxable father (legal owner ) or the son holding power of attorney
Replies (7)
Legal owner i.e. Father........
Son is only agent through POA.
But tenants are issuing cheque in favour of son (. POA holder ).
As I said he is (collecting) agent on behalf of his father (holding Power of Attorney)
When Taxability is concern......... the rent will be assessed in Father's hand, as he is legal owner.
(whether Son pays back the amount to his father or not, that hardly matters; but if he deducts any commission, it will be taxed in his hand)
Exactly, i was also of same opinion. Was taking second opinion. Thank you
as per charging section of rent Income
1 ownership is important
1 ownership is important
agree with Dhiraj sir
Actually son (POA holder ) executed a rental agreement on the basis of POA, which I think, now is invalid
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