the lease rent of land is taxable in your hands as income from other sources and for your father the rent will be taken as income from house property. The agreement and more details are required for more clarifications.
Income from property leased to father
I had a open land in my name which i gave on lease to my father for 30 years with condition that he will made construction on it and receive rent as his income. he will give me a lease rent of 3000 for my land . is the rent received after construction will effect my income in future.
Asked 2 years ago in Income Tax from bhubaneswar, Odisha
30 year lease will have to be registered and land lease income will be taxable in your hands.
It is only a tax planning. your father will give you 3000 for lease rent. You not mentioned the period for which you are receiving this rent . I think its 3000/- per month. Remember one thing lease rent which you are receiving, should be Equalant to market rate. It should not be less than lease rent paying by other in same location, for same area,
Sir, the amount of lease rent is 40000/annum and for 25 years as registered deed. yes sir, it is a tax planning. whether it is ok or i have to take make any change as i have already made the deed. please suggest me
Asked 2 years ago
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