I recently moved to USA. I own an apartment in Bangalore. I want to ask my tenant to deposit rent in my mother-in-law's account. Mother-in-law will show as her income, pay tax and file returns.
Is this allowed?
Or is it mandatory that only the owner should get the rent and pay tax for it? Reason is i have already crossed the 30% slab this year.
Rent from Bangalore Apartment Must Be Declared by Owner, Not Mother-in-Law, to Avoid Tax Issues. An individual who recently moved to the USA owns an apartment in Bangalore and inquires whether rent can be deposited into their mother-in-law's account, who will then declare it as her income for tax purposes. The concern arises due to the individual already being in the 30% tax slab. Respondents advise that the rent is considered the owner's income and should be taxed under their income tax return, suggesting that any transfer to the mother-in-law could be treated as a gift. The discussion highlights the forum's role in enhancing knowledge about income tax laws. (AI Summary)
TaxTMI 
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