My daughter stays in USA. She owns a house in India and has let it out. She has asked tenants to pay rent to me. She has not received any rent. Is she still liable to tax? What if she transfers the house to me?
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Rental income taxation: tax liability rests with the property owner even if rent is received by another person. Rental income is taxable in the hands of the property's legal owner; the daughter, as owner, is liable to pay tax even if tenants pay rent to another person.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Rental income taxation: tax liability rests with the property owner even if rent is received by another person.
Rental income is taxable in the hands of the property's legal owner; the daughter, as owner, is liable to pay tax even if tenants pay rent to another person.
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