Your father can execute POA in your favour to collect rentals from tenants , to pay EMI for loan out of said rentals , file income tax returns etc
Rent from father's property to son, procedures available for son to collect rent and pay income tax
My father inherited my grand father's plot(vacant land), I am the only son and legal heir of my father and I built a commercial building in that land using my personal loan. Now that land is in the name of my father. I want to know what options I have as a son to collect the rent from future tenants and deposit the same in my savings account and pay EMI for my loan and further pay income tax for the rental by myself and manage the profit loss of the building. Note I want the land to be in my father's name itself for his lifetime. Many Thanks in advance.
Asked 4 years ago in Property Law
Religion: Hindu
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6 Answers
You need poa from your father for the same
Sir, In POA i cannot file income by rental as my own income, it should be filed by my father only. I require an option like MOU which will allow me to deposit rental in my savings account and then I file income tax showing rental as my own income.Need other options Sir.
Asked 4 years ago
Unless that income is yours you can't claim that in your income tax. The said property is of your fathers he needs to execute an agreement/mou stating that the rental income is given to you by him as per his will and wish.
Income tax returns have to be filed on your father behalf
you are not owner of property and hence it cannot be reflected in your income
your father can execute sale deed or gift deed in your favour then only will it be reflected as your income
The property is in your father's name, hence he is the absolute owner of the property.
You cannot collect the rent as a owner neither you can legally retain the rental amount to yourself.
The income tax that you will be paying in the rental amount is a clear indication and evidence to prove that you are illegally collecting the rental amount from the property which do not belong to you.
This illegal act can be considered as a criminal offense also.
You might have funded for the construction of the structure but that would not make you entitled to the title of the property.
Therefore you may first get the property transferred to your name by your father executing a registered conditional settlement deed, by which he shall impose the condition of retaining life interest in the property.
You can discuss with an advocate and proceed as suggested.
Until and unless you transfer the property to your name by a registered document, you cannot legally collect the rental amount from the property that belongs to a third party.
You can be considered as your father's legal heir/successor in interest to succeed to your father's estates only after his lifetime and not before that.
You cannot claim even a share in the property as a right at least not during the lifetime of your father.