Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Which head of income and clubbing of income

rakesh (student) (457 Points)

14 March 2013

A assesee as income from salary and also has a separate complex from which his wife collects rent for letting out complex in which 1st floor are shops and other floors are let out for school and residential purpose. Whether the income from letting out the complex falls under which head as an house property or business income or other source. Whether clubbing is necessary in the total income of assessee or not . Whether clubbing is done incase property is in the name of his wife. I want to file income tax returns of the assessee online..Plz someone suggest and tell me the procedure to file return...

Reply
Follow
Share

7 Replies

Hanish Chaudhary (Chartered Accountant) (333 Points)
Replied 14 March 2013

@ Rakesh

1. The income from letting out falls under the head "Income from House Property". The amount is taxable in the hands of owner or deemed owner.

2. The clubbing shall be applicable if he has transferred the house property to her wife otherwise than for adequate consideration. In that case, he would be deemed to be the owner of that house property. The exception to this rule is, if the transfer has been done with an agreement to live apart.

3. The procedure to income tax efilling is:

a) Go the www.incometaxindiaefiling.gov.in and download the applicable ITR form.

b) Register the assessee on the website and activate the link send on the registered email id.

c) Fill the download form and generate xml file ready for upload.

d) login to income tax website mentioned above using the PAN

e) Upload the return efile > income tax return> upload return.

f) After uploading, download the ITR V and send the same to Bangalore.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Nitika (student) (72 Points)
Replied 14 March 2013

rent from complex will be taxable under HOUSE PROPERTY.

it will be deemed income of assessee(i.e. clubbing)

if complex is in name of wife then rent will be taxable in hands of wife.

1 Like

rakesh (student) (457 Points)
Replied 14 March 2013

@ hanish

if the property is in the name of wife than than separate return to be filed in wife name and if it is in the name of assessee than in his name as nikita said

rakesh (student) (457 Points)
Replied 14 March 2013

@ hanish

how much one can charge for such return...

Hanish Chaudhary (Chartered Accountant) (333 Points)
Replied 14 March 2013

@ Rakesh

The income has to be taxable in the hands of owner. If the property is in name of Husband then it shall be shown in Husband's return and if it is in name of Wife, then it shall be taxable in hands of wife.