Dear Gurus,
My father gifted me a land (in Tamil Nadu) and I constructed a building & left it on commercial rent. I’m planning to add my wife’s name as a co-owner to the property through a “settlement deed/agreement” in lieu of using her money/gift (her salary income, jewelry and her father’s monetary gift) for my purpose. I want the rental income on the property to be shared between me and wife without the clubbing of income provision getting applied. For this:
- Is the settlement agreement, the right one to use?
- Should the agreement show the consideration that I received/used from my wife to be eligible for non-clubbing of income?
- If yes, should the amount be in-line with the 50% of the registration department's value of the property?
- Any thing else to be taken care of in the process/agreement to ensure clubbing of income doesn’t happen?
Thanks for your valuable advice.