Hello
I am writing to seek expert opinion on claiming tax benefits through income derived from house rentals
I am an Income tax assesse, salaried class at 30% bracket working in a private sector. I do not have an HRA. I own an apartment in Chennai and I am renting out the apartment for ₹ 20000 per month from April 2016 onwards. The apartment I own is solely in my name only. Subsequently I am moving into a larger house which I am taking on rent and I will be paying a rent of ₹ 40000 per month + maintenance
I also have a consultancy (proprietary concern) firm that is defunct now. I am writing to seek views and expert opinion from the members of the forum on the following
- Can I write an unregistered will in the name of my mother transferring the apartment that I currently own which I will rent out for ₹ 20000 / month and collect the rental income in my mother’s name. Since my mother does not have any income the rental income will be tax free
- Alternately, Can I include the apartment I will be renting out for ₹ 20000 / month and the apartment I will be renting in for ₹ 40000 / month to my consultancy business to claim tax benefits, where I claim the rental income of ₹ 20000 as income received by the consultancy and at the same time I show an expenditure of ₹ 40000 + maintenance per month towards renting in an apartment to stay as expenditure. I have no other income in my consultancy business at this point of time
Please advise me what is the best way for me to optimise and pay no taxes
I look forward to hearing from you
Regards
Srinivasan Krishnan