19 August 2011
Dear Experts one of my client has settled his property in his wife name, the same is being let out, wife is getting the rental income, in this case in whose account such rent has to be consider for the income tax purpose, ie. who is to pay tax on this rental income, wife or Husband, as this is gifted by him
19 August 2011
Even though the legal ownership of the property rest with the wife as per section 27(1) of the IT Act,1961, rental income will be assessed in the hands of husband by virtue of section 64(1)(iv) of the said act.