Can owner’s son name be added to the rent agreement to share the tax burden?
Flat owner = Father
Son = not a owner/co-owner. The flat will be in his name after the father’s death as mentioned in his father’s will.
Question:
Can the rent agreement be done in the name of both, father + son (2 PAN) to share the tax burden?
What right does the son have to collect rent, seeing as he’s not owner?
Rental income is taxable in the hands of the legal owner of the property under Section 22 of the Income-tax Act. Merely adding the son’s name to the rent agreement, bank account, or PAN does not create ownership or permit sharing of rental income for tax purposes. A future right under a will has no present tax relevance. Rental income can be split only if the son becomes a registered co-owner of the property.
Thank you for the quick response and confirmation. Someone told me it is possible so wanted to check.