Clubbing of Income

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This discussion clarifies the taxability of income generated from a house property when the property itself isn't transferred to relatives like a major son, daughter-in-law, or another widowed daughter-in-law. According to Section 64, income is taxable in the hands of the transferor unless the asset is legally transferred. As a registered document is required for immovable property, simply assigning income without transferring ownership means the income will be assessed in the hands of the actual owner of record.

Ashwini Kalbhor

Ashwini Kalbhor (Querist)

06 September 2020 Hello,
Please tell me taxability in case of Income from house property transfer without transferring house property to Major Son, Daughter in law and another daughter in law ( Widow). TIA.

praveen

praveen (Expert)

06 September 2020 As per Section 64 transfer of income without transferring of asset is taxable in the hands of the transferor only.

CA Praveen M R
https://prsrglobal.in/

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Prakash Kochar

Prakash Kochar (Expert)

07 September 2020 For transfer of Immovable property registered document is necessary. It seems that House property is not transferred but want to show income in name of other relatives, which is wrong. Income will be assessed in hand of owner, in whose name the house is on record.

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