Rent Income on Gifted Property_Wife/Son

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When property is gifted to a spouse or children without payment, the transfer itself isn't taxed. However, the rental income generated from that property is taxable. Clubbing provisions, which attribute income to the original owner, generally apply when the property is gifted to a wife, but not typically when gifted to an adult son or daughter.

Dipen

Dipen (Querist)
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18 June 2024 Dear Experts,

If an individual gifts property to wife or children without any consideration, then that transfer will not be subject to any tax.

However rental income from that property will be taxable in whose hands? transferor or person receiving the gift? Will these attract clubbing provisions?