• Rental income deposits in HUF account.

Currently i filed 8 lack income through my business. I have commercial building ready to rent. And rend will be 14 lack per annum, Can i deposite my rental income to HUF account as karta to save taxes.
Asked 3 months ago in Income Tax

Rental income should belongs to owner. Thus, it should be taxable in your hand. It would be wrong to show it in the books of HUF.

Vidya Jain
CA, Kolkata
941 Answers
41 Consultations

4.8 on 5.0

For that you need to register the property in HUF name. You may lead to stamp duty and registration charges

Vidya Jain
CA, Kolkata
941 Answers
41 Consultations

4.8 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

You can transfer your income to HUF a/c , but you cannot escape the tax liability on that income due to clubbing provision.

 

It will be taxable in your hands only.

Payal Chhajed
CA, Mumbai
5077 Answers
152 Consultations

5.0 on 5.0

- It will be a transfer of income without transfer of assets. rental will be clubbed in your hands. For your business income you can claim the benefits of presumptive taxation scheme if eligible. 

- Income from conversion of self acquired property into joint property without adequate consideration is clubbed in the hands of transferor.

 

For detailed discussion, you may contact personally.

Vivek Kumar Arora
CA, Delhi
4063 Answers
338 Consultations

5.0 on 5.0

Hi,

 

The rent of the property will be taxable in the hands of the owner of the property. If you are owner, it will be taxable in your hands.

 

However, if you rent out the property to HUF and then HUF sublease the property to other tenants, an arm's length profit can be assigned to HUF.

Lakshita Bhandari
CA, Mumbai
5460 Answers
539 Consultations

5.0 on 5.0

Doing so won't help you save tax.

 

Hope you find the information helpful if you do please rate it 5 and if you need any further discussion you can book consultation.

 

Thank you

Naman Maloo
CA, Jaipur
3791 Answers
45 Consultations

5.0 on 5.0

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