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Mani (SA)     30 August 2018

Rent collected by mother on my behalf thru lease

Dear Experts,

I have a question on income tax, could anyone please clarify.

Im a working person and also having a rental property. When both the income are combined I need to pay a huge amount of tax. In order to reduce, is the below method allowed?

My mother can lease the entire property for a minimal amount (Rs.A) and sub let the shops and collect the rent from all shops (Rs. B)?

So I can pay tax for my salary + Amt A, my mother can pay tax for the amount B-A?

is this legally allowed?

Thanks in Advance



Learning

 2 Replies

Adv Deepak Joshi +917017821512 (Advocate)     30 August 2018

Dear querist,

Your concept/approach is not justified in terms of law. This may sound good when it comes of saving some amount of tax. But if tracked by IT department then will be problem for you.

 

But till time it remained undetected there is no problem. It is not advised.


 

Thanks and Regards

Deepak Joshi & Associates

Djaa.legal@gmail.com

Mb/whatsapp +919456777600

roma prajapati   05 September 2018

Check the clubbing provision of income tax . It is not advisable to do 


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