Originally posted by : deepak
	in my openion , clubbing provision will not apply, if husband gives money as loan to his wife , not as gift, and gift from relative (mother) is not taxable as per section 56(2) , hence there sholud be no cluubing

Agreed but if any income is earned out gift then that is taxable.

Deepak! I think you should study throughly  the tax on gift & clubbing provisions. Taxablility of gift arises for the person who receives the gift & Clubbing provisions are for those who gifts their property to their relatives or for inadequate consideration.

clubbing provisions would be applicable for sure of the proportiinate rent after interest n other allowed deduction.....no doubt regarding this....

Originally posted by : praveen
	I have a case where the individual is abroad and has sent some money to his wife in India, She arranges some more money from bank through loan and also uses the money received from her mother to buy a property. Now if the property is let out for rent and earns say 7.00 Lacs per annum. Will clubbing provisions apply & if yes what will be the taxable income in the hands of the individual

Nice Question.

Ans:

MONEY RECEIVED FROM HER MOTHER ? WHEN WAS IT RECEIVED AT THE TIME OF MARRIAGE OR AT TIME OF PURCHASE OF PROPOERTY  (WHAT EVER BE RECEIVED BETTER TREAT IT AS A GIFT IF ITS RECEIVED BY CHEQUE.)

MONEY RECEIVED FROM HUSBAND STAYING ABROAD CAN BE TREATED AS HOUSEHOLD EXPENDUTIRE REMMITTED BY HIM AND ANY SAVING FROM IT CAN BE HER SOURCE FOR ANY INVESTMENT.(NO CLUBBING WILL APPLY TILL SUCH EXTENT)

MONEY RECEIVED FROM HUSBAND SPECIALLY FOR THIS PURPOSE THEN  THE SHARE OF PROPERTY TO SUCH EXTENT BELONGS TO HIM. (BETTER THEN USING CLUBBING PROVISIONS Better Divide the Property) TO the AMOUNT SPECIALLY REMITTED BY HIM FOR PURCHASING THE PROPERTY AND CALCULATE INCOMEF ROM HOUSE PROPERTY LIKE THAT OF CO-OWNERS.

BANK LOAN : IT WILL BE IN HER NAME SO DEDUCTION OF INTEREST AND REPAYMENT etc will be applicable in her RETURN OF INCOME.

IF THIS IS CORRECT TELL ME .. and if WRONG MESSAGE ME WHAT IS CORRECT....

Originally posted by : praveen
	I have a case where the individual is abroad and has sent some money to his wife in India, She arranges some more money from bank through loan and also uses the money received from her mother to buy a property. Now if the property is let out for rent and earns say 7.00 Lacs per annum. Will clubbing provisions apply & if yes what will be the taxable income in the hands of the individual

Deemed owner Section 27 would not apply as the husband is transfering money not house property to his wife . However clubing Section 64 would apply if he transfers money without or inadequate consideration.

Assuming husband is transfering money without any consideration then proportionate income would be taxable to husband as NRI / Resident not ordinary / Resident as the case may be.

Even if wife is paying interest on amt. received from husband it has to be seen whether interest amount is adequate or inadequate If it is inadequate then then income from HP will be clubbed in hands of Husband proportionately.

For ur reference

“Owner of house property”, “annual charge”, etc., defined.

 ⁶¹ 27. For the purposes of sections 22 to 26—

        (i)  an individual who transfers otherwise than for adequate consideration any house property to his or her spouse, not being a transfer in connection with an agreement to live apart, or to a minor child not being a married daughter, shall be deemed to be the owner of the house property so transferred;

Income of individual to include income of spouse, minor child, etc.

 ¹⁷ 64. ¹⁸ [ ¹⁹ [(1)] In computing the total income of any individual, there shall be included all such income as arises directly or indirectly—

 (iv)  subject to the provisions of clause (i) of section 27, ²⁴ [* * *] to the spouse ²⁵ of such individual from assets transferred ²⁵ directly or indirectly to the spouse by such individual otherwise than for adequate consideration ²⁵ or in connection with an agreement to live apart ;

Originally posted by : anil kumar jain
	Originally posted by : praveen I have a case where the individual is abroad and has sent some money to his wife in India, She arranges some more money from bank through loan and also uses the money received from her mother to buy a property. Now if the property is let out for rent and earns say 7.00 Lacs per annum. Will clubbing provisions apply & if yes what will be the taxable income in the hands of the individual Nice Question. Ans: MONEY RECEIVED FROM HER MOTHER ? WHEN WAS IT RECEIVED AT THE TIME OF MARRIAGE OR AT TIME OF PURCHASE OF PROPOERTY  (WHAT EVER BE RECEIVED BETTER TREAT IT AS A GIFT IF ITS RECEIVED BY CHEQUE.) MONEY RECEIVED FROM HUSBAND STAYING ABROAD CAN BE TREATED AS HOUSEHOLD EXPENDUTIRE REMMITTED BY HIM AND ANY SAVING FROM IT CAN BE HER SOURCE FOR ANY INVESTMENT.(NO CLUBBING WILL APPLY TILL SUCH EXTENT) MONEY RECEIVED FROM HUSBAND SPECIALLY FOR THIS PURPOSE THEN  THE SHARE OF PROPERTY TO SUCH EXTENT BELONGS TO HIM. (BETTER THEN USING CLUBBING PROVISIONS Better Divide the Property) TO the AMOUNT SPECIALLY REMITTED BY HIM FOR PURCHASING THE PROPERTY AND CALCULATE INCOMEF ROM HOUSE PROPERTY LIKE THAT OF CO-OWNERS. BANK LOAN : IT WILL BE IN HER NAME SO DEDUCTION OF INTEREST AND REPAYMENT etc will be applicable in her RETURN OF INCOME.   IF THIS IS CORRECT TELL ME .. and if WRONG MESSAGE ME WHAT IS CORRECT....

Hmmmmm. I know about PIN money. But it is also necessary to have supporting documents to prove that it was pin money. in the present case it was received in lumsum 5L x 3 through an NRE account.

Anyways mother has though given a gift she is also in receipt of some kind of compensation against her contribution, hence it can be treated as loan and no clubbing provisions apply here.

Originally posted by : praveen
	Originally posted by : anil kumar jain Originally posted by : praveen I have a case where the individual is abroad and has sent some money to his wife in India, She arranges some more money from bank through loan and also uses the money received from her mother to buy a property. Now if the property is let out for rent and earns say 7.00 Lacs per annum. Will clubbing provisions apply & if yes what will be the taxable income in the hands of the individual Nice Question. Ans: MONEY RECEIVED FROM HER MOTHER ? WHEN WAS IT RECEIVED AT THE TIME OF MARRIAGE OR AT TIME OF PURCHASE OF PROPOERTY  (WHAT EVER BE RECEIVED BETTER TREAT IT AS A GIFT IF ITS RECEIVED BY CHEQUE.) MONEY RECEIVED FROM HUSBAND STAYING ABROAD CAN BE TREATED AS HOUSEHOLD EXPENDUTIRE REMMITTED BY HIM AND ANY SAVING FROM IT CAN BE HER SOURCE FOR ANY INVESTMENT.(NO CLUBBING WILL APPLY TILL SUCH EXTENT) MONEY RECEIVED FROM HUSBAND SPECIALLY FOR THIS PURPOSE THEN  THE SHARE OF PROPERTY TO SUCH EXTENT BELONGS TO HIM. (BETTER THEN USING CLUBBING PROVISIONS Better Divide the Property) TO the AMOUNT SPECIALLY REMITTED BY HIM FOR PURCHASING THE PROPERTY AND CALCULATE INCOMEF ROM HOUSE PROPERTY LIKE THAT OF CO-OWNERS. BANK LOAN : IT WILL BE IN HER NAME SO DEDUCTION OF INTEREST AND REPAYMENT etc will be applicable in her RETURN OF INCOME.   IF THIS IS CORRECT TELL ME .. and if WRONG MESSAGE ME WHAT IS CORRECT.... Hmmmmm. I know about PIN money. But it is also necessary to have supporting documents to prove that it was pin money. in the present case it was received in lumsum 5L x 3 through an NRE account. Anyways mother has though given a gift she is also in receipt of some kind of compensation against her contribution, hence it can be treated as loan and no clubbing provisions apply here.

So I THINK WILL ALL THE ANSWERS YOU HAVE GOT THE WAY WHAT TO BE DONE.. TREAT WIFE N HUSBAND AS EQUAL PARTNERS IN THE PROPERTY OR TREAT MONEY FROM HUSBAND ALSO LOAN N LET THE PROPERTY BELONG TO WIFE ALONE.