income tax on lease rent

I am a govt employee earning approx 9.00 lacs per annum.I sold my house for 22 lacs and purchased a commercial property in the name of my spouse in financial year 2009-10 by giving her a loan of 22.00 lacs. The amount of capital gain was paid by me as per the act on sale of house. Now my wife has given the said propert on lease rent of approximate 2.5 lacs per annum effective from may-2011. My question is, Whether the income derived by my wife will be added to my income or her income. My second question is what are our independent liability of paying income tax on lease rent. No amount of loan or any interest there of has been returned by my wife to me so far.

asked Aug 31 '11 at 17:04 by subhash08 1111


As the amount has been given to your wife on loan, income generated from its investment would be taxable in her hands only.

But to financially make that right, you should be having a simple loan agreement and she should be paying some interest to you (which will be taxable in your hands). You may consult a tax professional/CA to do paper work to legitimize it.

answered Aug 31 '11 at 22:05 by pankaj 5.2k320

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Asked: Aug 31 '11 at 17:04

Seen: 1,272 times

Last updated: Aug 31 '11 at 22:05