Query regarding income from rent

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  1. anuragscm12

    anuragscm12 New Member

    Myself and my brother is the owner of the property which we have let out for rent. Tenant transfer rent in my savings account and my brother is NRI
    I am a salaried employee and i am filling return using ITR1.
    Would like to know can I show only half the rent in the column 'Income from one house property'
    Eg: If I have received Rs 1,00,000 as a rent,can i show only 35,000 after standard deduction?
    Please suggest.

    Thanks & Regards
  2. ZED

    ZED Well-Known Member

    If you own more than one residential house property , then as per Rule 12, you should not file ITR-1. File ITR-2A.

    If the property is joint and the rent agreement also specifies that rental income is to be given to both of you then each one of you should treat that much amount of income which accrued to each person. [Be it 50:50 or 40:60 or any other ratio.]

    If rent is more than 1 Lakh then you should provide your PAN to the tenant.

    I wonder if Tax has been deducted while making payment to your brother @ 30% because he is a NRI. Well, there are certain complications with NRIs.

    Please explain more in respect of
    anuragscm12 likes this.
  3. anuragscm12

    anuragscm12 New Member

  4. anuragscm12

    anuragscm12 New Member

    I am having only one house.
    The house is built on our inherited land by the builder and me and my brother got a share from builder.
    The rent agreement is between me and tenant only. Rent is submitted by the tenant in my account.I have not transferred any amount to my brother till now but will give him once he come to here.Rent is below 1 lakh
    Please advice.
  5. ZED

    ZED Well-Known Member

    Since the amount is so trivial , I do not wish to go at the bottom of this, even the AO might not. But, if the property belongs to two person then one person alone can not let it out unless the first person had executed Power of Attorney in favour of the other to allow letting out of the property and to collect the rental income. Further, if rental income is not to be considered by that second person (your bro) as his income, then there should have been a separate agreement for this in which he should have relinquished the right to receive any income from the house.

    This is what was suppose to be done, but since it's small case, I am not saying anything in this regards.
  6. anuragscm12

    anuragscm12 New Member

    Thanks for your help
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