Question ID :
41063
Rental income in a Partnership firm on properties owned by partners
There are 2 NRI's holding a piece of land and are willing to construct a residential/commercial complex with an intention to earn rental income. Construction is carried out partially with own funds and partially using a bank loan.
As per RBI Master Direction on FDI... this activity is permitted as it is specifically excluded from definition of real estate. IS this interpretation correct ?
Now they want to have a partnership firm wherein there will be 3 partners out of which 2 of them will be the NRI and 1 Person will be a Resident. The objective of the partnership firm shall be to receive the rental income on such constructed complex. The objective of firm shall be leasing of property.
Questions :
Can partnership firm receive rental income from the property owned by its partners?
what are the other / better ways to execute this ?
Citation of any section/circular/case law will be very much useful.
Thanks a lot
posted by
SRIMANTH KULKARNI
on
Jun 2 2021 12:00AM