Tax Rebate on Caretaker Salary

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  1. Deepanshu Gehlot

    Deepanshu Gehlot New Member

    Dear Sir

    My mother is self employed as she have a rental income from commercial property (part of residence given on rent to shop). As she is aged now I used to take care of her rental property, accounts etc. Property is in the name of herself.

    I would like to know if she shows me as a caretake of her rental property and paid me salary in lieu of such services is the amount of Salary is accountable for tax rebate in anyway

    I yes, please provide the details

  2. Karan Batra

    Karan Batra Well-Known Member

    Dear @Deepanshu Gehlot

    In the hands of your mother
    A Standard Deduction of 30% is allowed from the Rent received. This deduction is basically allowed for doing maintenance and all related expenses. No other deduction would allowed to her and only a flat 30% deduction would be allowed irrespective of the actual expense incurred.

    In your Hands
    If she is paying you salary it would be taxable in your hands as Income under head Salary

    My advice
    If your mother pays you salary - she won't get any tax deduction but it would get taxed in your hands. So, I don't think there is any tax benefit of her paying you any salary.
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