rental income

Dear Sir,

I am holding two residential property & one commercial property .

One residential Property is occupied by me .

and other residential & commercial property is rented out .(this property are on loan)

I am currently in 30 % tax bracket.

In order to save income tax from rental income ,can i make a rental agreement in name of my wife and take the rental income into her account .???

What are the possible ways in this scenario to save tax from this rental income???






AFAIK, the rental income accrues to the person in whose name the property is. Your making the agreement in your wife's name, and taking monies in her account by means of a cheque in her name will not make a difference. Besides, maybe you will not find tenants ready to accept such kind of agreements easily.  That is the legal position.



Godghate, please get yourself a tax lawyer because you appear to be uninformed about the tensions you could have with the revenue dept if you mess up papers in order to save tax. You can contact my firm for legal assistance on 8892562298 as my law firm is specilized in tax laws.

(1)If you want to make a rental agreement in your wife's name, the property has to be in her name at first. Then she is entitled to execute a rental agreement and thereby getting rents from her tenants.

(2) If the rents are crediting in her bank account, she should have a pan card and finally she has to file her tax returns at the year end. Anyhow  TDS should be deducted on monthly rental income.

(3) then only she is entitled to claim back the excess TDS amounts.




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