Rent paid to my relative

[Asked by Guest]

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.

AI Summary

Rental income remains taxable to the property owner even if rent is deposited into a relative's account.
Rental receipts from a property are the income of the property owner and remain taxable to the owner even if the tenant deposits rent into a relative's account; the owner may subsequently transfer funds to the relative by gift, but such deposits do not shift the owner's tax liability.