I have a power of attorney for an agricultural land I'm making expenses for that land to convert it into some residential plots. I'm having expenses bills in my name can the landlord claim expenses in Income Tax even bill is in my name
Income tax - Property (Regarding expenses Claim)
Sangeetha D
Power of attorney holder's expenses cannot be claimed by landowner for tax deductions without proper reimbursement documentation A power of attorney holder incurred expenses for converting agricultural land into residential plots, with bills in their own name, questioning whether the landowner can claim these expenses for income tax purposes. The response clarifies that under the Income Tax Act, only the person who actually incurred the expenditure can claim deductions. Since bills are in the power of attorney holder's name, the landowner cannot directly claim these expenses unless there is clear reimbursement or the power of attorney deed specifically states expenditures are made on behalf of the landowner with proper documentation establishing financial nexus. (AI Summary)
TaxTMI
TaxTMI