House property

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Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2012 Mr. A has a house Property. The monthly rental income of the property is Rs. 10,000. Mr. A also receives annual salary amounting to Rs. 2,50,000. To avoid tax he transferred this house property to his wife with consideration amounting to rs. 5,00,000. Mrs. A deposited the amount in Mr. A's a/c.
Shall the Clubbing Provision be applicable,if not what will be the implication of Section 27 ????????

aadish

aadish (Expert)
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27 July 2012 If the consideration is adequate , then clubbing provisions will not be applicable, and income from house property will be added to wife's income and section 27 is also not applicable cz sec 27 specifically says tranferor will be considered as deemed owner only when house property is transferred withiout adequate consideration.

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Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2012 Thanks,
It means that a person can easily save tax by transferring the property with adequate consideration to his/her spouse if spouse's income is below basic exemption limit.

aadish

aadish (Expert)
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27 July 2012 Yes but a person must have transferred house property by receiving adequate consideration.

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Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2012 But in this case when the house is transferred from Mr. A to his Wife then shall the provision of capital gain be applicable or not?

aadish

aadish (Expert)
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01 August 2012 Not applicable, but if gifted without consideration, clubbing provisions attracted.

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