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Property Gift Tax Rules

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Rahul

Tax Payer

29 Points Posted on 06 June 2022

I have a property. I want to Gift it to my spouse.

I will pay rent to my spouse for staying in the house

Question

The income generated from the House post the Gift in the form of rent. Who is the income owner ? Under whom will the income be added and taxed ? me or my spouse or both ?

Replies (5)

Quick Summary

This discussion explores the tax implications of gifting a property to a spouse and subsequently paying rent to them. The core question is who is liable for income tax on the rent received. It's clarified that income generated from a gifted asset without consideration is typically taxed in the hands of the transferor. The thread also delves into whether registering a gift deed or transferring property for consideration can shift ownership and tax liability to the spouse.

CA Rashmi Gandhi

Chartered Accountant

44487 Points Posted on 07 June 2022

When anything gifted without consideration, the. income generated from such gift is taxable in hands of transferor.

So rent income will be taxable in your hands

Rahul

Tax Payer

29 Points Posted on 07 June 2022

So I get HRA benefits by paying rent to my wife and then the rent adds to my income ? This doesn't make sense.

The question follows , how can I make my wife the owner of the house so that she can receive rent without the rent income taxable in my hands ? Is there any option to do this without consideration ?

sabyasachi mukherjee

Profession

19978 Points Posted on 07 June 2022

Not possible

Rahul

Tax Payer

29 Points Posted on 07 June 2022

What if I register the Gift Deed at the register or sub-register's office ? Pay stamp duty . This should do a title transfer and thereafter the house owner becomes my wife ?

Once the title transfer is done my wife is the owner of the house , is this not the case ?