Income from gifted house property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2015 One of my client Mr. X. His father gifted a house property to the son of Mr. X. and the rental income from the house property is Rs. 500000. In whose hands the rental income will be charged if son of Mr. X is a 1. Minor 2. Major. Can this property be treated as HUF property

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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29 March 2015 No clubbing provisions will apply on such a transaction in the hands of father of Mr. X. But rental income will be added in the hands of Mr. X or Mrs. X whose income is greater before including such an income if marriage persists and if no marriage persists than the parent who has brought up the child in the previous year. Off course this will be applicable if Mr. X's son is a minor and if he is a major than only his income. However a deduction of Rs. 1500/- will be provided to the parent out of such income in whose hands it is clubbed if Mr. X's son is a minor.