Regarding deemed owenership in house property

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Ravi Hissaria (Querist)
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16 January 2012 Sir,
there is a provision in House property Head that if assessee transfers the property to his minor married daughter provision of deemed ownership would not be applicable therefore tax liblity will arise in the hands of minor daughter now my question is parents are not deemed owner but I think provision of clubbing of income will be applicable am I true? Are parents are liable to pay tax on rental income of such Property as a representative assessee.if not then please tell me correct answer.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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16 January 2012 Deemed ownership is not applicable in case house property is transferred to a minor married daughter.

However, Section 64(1A) shall be applicable in this case and rental income from house property shall be clubbed in the hands of the parent whose income is higher.