if husband transfers his house without consideration to wife who in inturn transfers to her son in whose hands will rent be taxable? and under which section?
13 Replies
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 05 May 2017
In the hands of husband as per sec 64 but i dont know the subclause
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 05 May 2017
If house is transferred to son without consideration then rent is taxable in hands of husband.
sivabommakanti
(CA - Tax Consultant)
(267 Points)
Replied 05 May 2017
y wont 27(i) apply when the husband transfers to wife w/o consideration in the first instance?
sagar parakh
(Group 2 Cleared)
(317 Points)
Replied 05 May 2017
Sec 27 shall apply in case of house property..that is Husband shall be considered deemed owner of such property and accrual of rent income shall be clubbed in his hands.
sivabommakanti
(CA - Tax Consultant)
(267 Points)
Replied 05 May 2017
ICAI answered the question in PM applying sec 64 and the answer is income is taxable in the hands of son and not the father. idk how?!
CA Sumit Ramesh Bharadia
(Practicing Chartered Accountant)
(625 Points)
Replied 05 May 2017
As per Section 64(1)(iv) Income from assets transferred directly or indirectly to the spouse without adequate consideration is Chargeable to Individual transferring the asset.
Also
As per Section 27(i) If an individual transfers any house property to his or her spouse/ minor child otherwise than for adequate consideration, the transferor in that case is deemed to be the owner of the house property so transferred.
As you can see, the act nowhere taxes Income from House Property Transferred to Major Son without consideration in hands of transferor.
Hence in your question, the Income is taxable in hands of son.
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 05 May 2017
Income is taxable in hands of son if he is major or in hands husband if he is minor. It depends on the majority of son.
Gift given to major son doesn'
Gift given to major son doesn'
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 05 May 2017
Gift given to major son doesn't attract clubbing provision. So the renyal income is taxable in hands of son.
sivabommakanti
(CA - Tax Consultant)
(267 Points)
Replied 05 May 2017
but y wont s 27 apply is my doubt
rama krishnan
(12239 Points)
Replied 06 May 2017
section 27(i) meant to decide ownership of property
sivabommakanti
(CA - Tax Consultant)
(267 Points)
Replied 06 May 2017
so u say the owner is still the father but income is taxable in hands of son?
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 06 May 2017
Sec 27 attracts if property transferred to minor son without consideration.
rama krishnan
(12239 Points)
Replied 07 May 2017
pls refer clause (vii) & (viii) of sub section 1 of section 64. it states any person. any person includes major son also... correct me if iam wrong
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