clubbing - whether house property included

Dear Kunal,

Nice one friend......

Lets take this If Mr. A transfer aHouse to Mrs. B then Mr. A will be deemed as owner by virtue of Sec 27...and the provisions of Sec 64 will not apply inthis case..

The reason for this is "The exemption of one house property & the manner of computation under clubbing"

Since in case of clubbing the income is first computed in the hands of transferee & then it is clubbed in the hands of tranferor, now both transsferee & transferor could claim exemption in res[pect of one house &would defeat the provision of deemed let out......

But the above arrangement or tax aviodance is possible in case of transfer to Son's wife becos it is not covered by Sec 27...................The provisions of Sec 64 will apply & unfortunately  2 properties can be claimed exempt.

The above cases deals with irrevocable transferes whereas In case of revocable transfer income is clubbed by virtue of Sec 61....It is in the nature of Sec 64  only....

In case of tranfer of property to HUF -Income shall be clubbed u/s 64, this arrangement is also not covered by sec 27