Gift Tax on Purchase of House from Brother’s money

POSTED BY suree ON December 27, 2013 6:16 pm COMMENTS (2)

Hi,

My brother bought a house from his NRI income, but the payments were made through my bank account, spouse account and my brother account. Brother transferred the amount through cheque and internet banking. Now the property is in his name.

The rent from this house, i being credited to my spouse account (to track it separately). The same is being settled to my brother whenever i need to do repair. Accumulated amount is generating interest and i will settle the amount to him when he needs.

My wife is a PAN holder, never filed income tax return till now. She does not earn any income for any other sources, she did not file it return till now.

whtther rent amount is taxable(204000/year), this amount is being credited to my spouse account for tracking the rent received on behalf my brother.

what is the tax implication on the rent amount/interest generated on the rent amount.

Regards

2 replies on this article “Gift Tax on Purchase of House from Brother’s money”

  1. suree says:

    thanks for your answer

  2. ashalanshu says:

    Dear Suree, you are inviting trouble un-necessarilly. Please deposit the amount to your brother’s account only.

    Thanks

    Ashal

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