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Kuldeep Singh   17 June 2021

Query about notarized rent agreement made by landlord


I am lordlord and i made notarized rent agreement for my tenant of amount Rs 8333 per month but i am taking amount Rs 15,000 from tenant by cash. Tenant also agrees with this oral communication means no problem between me and tenant. But i wanted to know that am i safe from income tax department side and court-case side ? in which condition i treated as offender/defaulter ?


 7 Replies

Sudesh Kumari (Advocate)     18 June 2021

It is ok till all is well but if you need to go to the court then you can claim only Rs. 8333 as rent and not Rs 15000.

P. Venu (Advocate)     18 June 2021

Admittedly, you have have evaded the legal requirements. It is too late to offer any suggestion.

Kuldeep Singh   18 June 2021

Mam, i

i made notarized rent agreement for my tenant of amount Rs 15,000 per month and not given PAN number, signed rent receipts from my(landlord) side to tenant with mutual understanding but in case tenant silently informed to income tax department that landlord is not not giving PAN then any action taken by IT deptt or court on me ?

If i mentioned maximum Rs 8,333 amount on rent agreement then i am safe. am i right or not ?

P. Venu (Advocate)     18 June 2021

The query is purely hypothetical. There is nothing that prevents you from making a honest disclosure of your income from rent in the Income Tax returns.

T. Kalaiselvan, Advocate (Advocate)     20 June 2021

Such type of issues are very commonly prevailing  everywhere.

The problem will arise only when you issue a receipt for the actual amount you have received from and if he prefers to go to court or report about the tax evasion to the income tax department.

If everything goes on smoothly and you maintain a cordial relationship with your tenant then you need not be worried about it for at least now.

Kuldeep Singh   20 June 2021

Thank you sir

Dr J C Vashista (Advocate)     22 June 2021

There is no issue till any dispute arises between you and your tenant qua amount of rent received and documented/ acknowledged.

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