I have one query regarding taxability issues under Income Tax Act.
Facts are as below :
I am retired nationalize bank employee and owning one self occupied property in Vadodara, Gujarat. The house property is wholly in my name. For your information, my wife does not have any income source. Now, I would like to buy one new house property for self purpose out of fund available with me. What is advisable to buy second house property in my name or my wife’s name from Income tax clubbing of income point of view and later on income tax implication of deemed let out property?
As I understand, If I would purchase property in my name, there would be income tax chargeable on notional rent as second self occupied property would be considered as deemed to be let out property. My confusion is that If I buy property in my wife’s name then also notional rent would be chargeable in as my income or my wife’s income separately considering clubbing of income provisions under Income Tax?
Humble request you to please advise.
CAclubindia
