• ITR benifit on rent

I am having joint account with my husband, in which tenant will be paying rent. In joint account husband is primary holder and rent agreement is done between me and tenant, my Pan no is written in rent agreement. so tenant is asking for my personal account to be used for rent transactions. because he says that, from joint account tax will be filed only on my husbands income, not mine. So he(tenant) will not get tax benifit on rent. Is it true? Do I need Seperate Account?
Asked 8 years ago in Taxation

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1 Answer

From  your   query  it appears  that the tenant is in doubt  that you may or may not declare the rental income in your  return of income since you are depositing the same in a joint bank account wherein your husband is the first account holder, by which the tenants tax benefit  of the said amount may be affected in her case. However the fact is that once you declare the rent income in your return of income wherein you will have to quote the PAN of  tenant it would make no difference as to in whose bank account the rent is deposited coupled with this the tenant can always rely on the registered rent agreement and the rent receipts issued by the land lord. So as per INCOME TAX ACT there is no specific requirement of opening a separate bank account .

Sunil Makhija
Advocate, Mumbai
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