Taxation of Life Interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 June 2011 I have a doubt regarding life interest retainment.
A couple have retained life interest but have settled the property in the name of their son.
The house property is occupied by them and partly it is let out.
In whose hands will the income from house property be taxed??
Will it be taxed 50% each?
Can life interest be sold to others?

Ashok Asthana

Ashok Asthana (Expert)
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03 June 2011 Yes. Income will be liable for tax in the hands who ever is receiving he rent. There is nothing wrong in settling the property in their son's name.

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2011 Thank u so much!!!
My question is that whether the husband and wife can share the rental income in their respective returns? because they are sharing the life interest?

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Ashok Asthana

Ashok Asthana (Expert)
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04 June 2011 Yes, if both are paid separately. Please dont mix life interest with income. They are two different things.

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2011 Thank u so much!!!