If property is transferred to minor child for adequate consideration,
as per Section 27 minor child shall be considered as the owner.
But the Rental income from the property will be clubbed in the hands of parent right?
Right.
5 Replies
CA. sanjeet Kumar Ojha
(Chartered Accountant)
(272 Points)
Replied 03 February 2019
right with one exception
If minor child is suffering from disability mentioned under section 80U then clubbing provisions are not applicable.
If minor child is suffering from disability mentioned under section 80U then clubbing provisions are not applicable.
PUSHP KUMAR SAHU
(CA FINAL ASPIRANT)
(3115 Points)
Replied 04 February 2019
INCOME WILL BE CLUBBED IN THE HANDS OF EITHER PARENT WHOSE TOTAL INCOME IS HIGHER BEFORE CLUBBING MINOR INCOME
Priya Kashyap
(Student)
(7053 Points)
Replied 22 February 2019
in the case above mentioned a property which is immovable like land or building transferred to a minor covered under section 27 deemed ownership.
but any income arising out of that property which is held by minor will be clubbed in the hands of his or her parents under section 64(1A)
but any income arising out of that property which is held by minor will be clubbed in the hands of his or her parents under section 64(1A)
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