17 April 2012
yes house property can be in the name of minor and it is valid as well and as per clubbing provision , income from HP will be taxable in hand of either mother or father whose income will higher in previous year
18 April 2012
although minor is incompetent to enter into a contract, the parents can enter into such a contract for the benefit of the minor, that means minor cannot buy the property, but in his name his guardians can purchase the property in the name of minor.
And for clubbing of income All income which arises to the minor shall be clubbed in the income of his parents. Income will be included in the income of that parent whose total income is greater. This case has two exceptions (1) Income of minor child suffering from specified disability . (2) Income of minor child on account of manual work or involving application of his skill/talent etc.
Since House property Income doesn’t fall under any of the exceptions such income will be clubbed in the income of that parent whose total income is greater.
CAclubindia
