karthik (ca final) (84 Points)
06 July 2011My Client who is working in abroad has buyed Flats in india. in the name of his wife name. But wife has No source of income. He Rent the Flats get rental Income, The tenant Deduct TDs from the Rent which is credit to Wife Pan No.
Q1. Whether I have show Rental income In his Return or Wife Return
Q2. If I shown Rental Income In his Return, I will Take TDS credit
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 06 July 2011
You have to show rental income in the wife's hands. Compute tax liability and adjust TDS.
I am unsure if clubbing provisions will be invocable so that rental income will be taxable under husband's hands.
How was the flat bought in wife's name ? Where the funds came from ?
Mihir
(Wealth Manager)
(5293 Points)
Replied 06 July 2011
Flat is in wife's name. Rental income is coming in wife's name. Return should also be filed in wife's name.
JINESH SHAH
(PRACTICING CA)
(151 Points)
Replied 06 July 2011
| Originally posted by : Mihir | ||
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Flat is in wife's name. Rental income is coming in wife's name. Return should also be filed in wife's name. |
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RONAK DARJI
(CA FINAL)
(382 Points)
Replied 06 July 2011
As per my knowledge Clubbing Provision is applied in Your case, In breif Tenant deduct tds on your wifes name but you bought flat on your own money so whatever rental income will be taxable and clubbed in husband's hand.so you have to pay tax on rental income in respective A.Y. you can take tds credit by applying Clubbing Provision u/s 61 of Income Tax Act.
Regards,
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 06 July 2011
you have to file the return of wife as income of rent received and claim TDS
Rajesh
(Accountant)
(39 Points)
Replied 07 July 2011
Hello
If the clubbing provision applies (wife's income to be clubbed with husband's income), how Husband can claim TDS deducted from wife and certificate issued in wife's name?
Please advise.
Regards,
SANKARA NARAYANAN
(ACCOUNTANT)
(57 Points)
Replied 08 July 2011
Rental Income should be shown in his wife return and TDS. will be deducted by the tenant to his wife PAN only.
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