Here are my House property files which could nt be downloaded.

Plz find the attachments.

 Deeemed owner is one whose name Property is not registered but he enjoys the possession and rights over the property.

Ans 1 ...

U can make ur parents as deemed owner by transferring the deed in name of them.

Gifting the flat won't provide u any benefit, as income will be counted urs as according to the clubbing rules.

Ans 2 ....

yes amenities will provide u some benefit. As these are not considered in the rent. But ur rent will be subject to the higher of Standard Rent. So u will have limited benefit only.

Ans 3 ...

Transfer is done by power of attroney and give ur parents a right to deemed owner and taxed according to their income.

But clubbing rules won't provide such benefit. In this case it will be considered ur income only not ur parents.

I think Renu

Gifting to parents = No clubbing Provision apply ( No tax on gift to relatives + income earn on that gift will be treated as their own income)

It only apply to wife & minor Child =  Clubbing provision

https://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITAC&schT=&csId=5842f866-232a-4a23-bd4d-13660106be39&rdb=sec&yr=e5be6bdb-1fc4-42d6-ac7b-34a44fd65485&sec=56&sch=&title=Taxmann%20-%20Direct%20Tax%20Laws

(  

      (a)  any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum;

 ⁷⁶ [(b)  any immovable property, without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property;]

      (c)  any property, other than immovable property,—

       (i)  without consideration, the aggregate fair market value of which exceeds fifty thousand rupees, the whole of the aggregate fair market value of such property;

      (ii)  for a consideration which is less than the aggregate fair market value of the property by an amount exceeding fifty thousand rupees, the aggregate fair market value of such property as exceeds such consideration :

                Provided that where the stamp duty value of immovable property as referred to in sub-clause (b) is disputed by the assessee on grounds mentioned in sub-section (2) of section 50C, the Assessing Officer may refer the valuation of such property to a Valuation Officer, and the provisions of section 50C and sub-section (15) of section 155 shall, as far as may be, apply in relation to the stamp duty value of such property for the purpose of sub-clause (b) as they apply for valuation of capital asset under those sections :

                Provided further that this clause shall not apply to any sum of money or any property received—

      (a)  from any relative; or

      (b)  on the occasion of the marriage of the individual; or

      (c)  under a will or by way of inheritance; or

      (d)  in contemplation of death of the payer or donor, as the case may be; or

      (e)  from any local authority as defined in the Explanation to clause (20) of section 10; or

       (f)  from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or

      (g)  from any trust or institution registered under section 12AA.

                Explanation.—For the purposes of this clause,—

      (a)  “assessable” shall have the meaning assigned to it in the Explanation 2 to sub-section (2) of section 50C;

      (b)  “fair market value” of a property, other than an immovable property, means the value determined in accordance with the method as may be prescribed ⁷⁷ ;

      (c)  “jewellery” shall have the meaning assigned to it in the Explanation to sub-clause (ii) of clause (14) of section 2;

      (d)  “property” ⁷⁸ [means the following capital asset of the assessee, namely:—]

       (i)  immovable property being land or building or both;

      (ii)  shares and securities;

     (iii)  jewellery;

     (iv)  archaeological collections;

      (v)  drawings;

     (vi)  paintings;

    (vii)  sculptures; ⁷⁹ [***]

   (viii)  any work of art; ⁸⁰ [or]

 ⁸⁰ [(ix)  bullion;]

      (e)  “relative” shall have the meaning assigned to it in the Explanation to clause (vi) of sub-section (2) of this section;

       (f)  “stamp duty value” means the value adopted or assessed or assessable by any authority of the Central Government or a State Government for the purpose of payment of stamp duty in respect of an immovable property;]  )

in your reply what do you mean by "transferring the deed in name of them" could you elaborate.

if any other way let me know

from where we will subtracted unrealised rent??????????

unrealised rent will be deducted from the rent receivable. And it wil not confer any effect on expected rent or standard Rent.

Yes u r right Suhas. clubbing provision won't apply.

I thought that you will be real beneficiary, so it should be taxable to ur account. But I was wrong in my opinion.

I also checked many sites.  clubbing provision won't apply in the above case. Its truly right.

you can transfer them property  either by

• sales deed
• gift deed
• power of attorney.

There is deduction granted while transferring the property to parents in LA and california and such others..

I find just one similar case as of urs....

As an NRI, I wish to help my aging parents to build a house, in their name. If I were to simply transfer the requisite funds to my NRE account and they use those funds towards the construction of a home with all property in their name, how does it affect their tax liability? Can these funds be considered gifts and if so, are they taxable?

There is no tax complication in the procedure outlined and there are no gift tax implications also.

in accordance with indian tax laws ,

Yes Renu, such transfer ( with relative ) can be consider as Gift OR Loan, it is tax free

But it should be written document ? between both of you, no need of any stamp / Notarised as per my knowledge.

that property belongs to parents and any income arising from that property will be treated as parent income

"A Non-Resident Indian can gift to his/her parents in India from their NRE (Non-Resident External) account without their parents suffering any tax."

https://business.rediff.com/report/2010/feb/01/budget-2010-perfin-the-latest-change-in-rules-on-gift-tax.htm

I dont think power of attorney = is right way to do so because POA means representation of owner what your view ??

Regards

POA will give ownership rights completely .

So it will be a good option according to me .

while giving gift to ur parents ....U will also  sign gift deed or something na ....

how can u transfer without that ,,,?

See the clubbing provision sec 60-61 below

YEs in my case I need to do gift deed as well as have to pay stamp duty & registration charges as well being it is immoveable Property ,

But in your case you can do so by transfering money, bank transfer to your parnets and later on, Parents will buy / Construct flat  or real estate property so in cash bank gift just plain paper written is enough

A.  Transfer Of Income Without Transfer Of Asset (Sec. 60)

Section 60 is applicable if the following conditions are satisfied:

    The taxpayer owns an asset
    The ownership of asset is not transferred by him.
    The income from the asset is transferred to any person under a settlement, or agreement.

If the above conditions are satisfied, the income from the asset would be taxable in the hands of the transferor

Illustration 10.1: Amitabh Bachan owns Debentures worth Rs 1,000,000 of ABC Ltd., (annual) interest being Rs. 100,000. On April 1, 2010, he transfers interest income to Sharukh Khan, his friend without transferring the ownership of these debentures. Although during 2010-11, interest of Rs. 100,000 is received by Sharukh Khan, it is taxable in the hands of Amitabh Bachan as per Section 60.

B.  Revocable Transfer Of Assets (Sec 61)

‘Revocable transfer, means the transferor of asset assumes a right to re-acquire asset or income from such an asset, either whole or in parts at any time in future, during the lifetime of transferee. It also includes a transfer which gives a right to re-assume power of the income from asset or asset during the lifetime of transferee.

If the following conditions are satisfied section 61 will become applicable.

    An asset is transferred under a “revocable transfer”,
    The transfer for this purpose includes any settlement, or agreement

Then any income from such an asset is taxable in the hands of the transferor and not the transferee (owner).

Note:-In the case of irrevocable transfer of asset , the income from such assets will be deemed to be the income of the transferee (To whom the asset has been transferred), provided that the transfer is not for the benefit of the spouse of the transferor.
 

"POA will give ownership rights completely .

So it will be a good option according to me ."

After reading the above do you still think POA can bypass for Sec 60, 61 above & will consider as transfer of asset. ??

Suhas ... Just read ur own lines ...

Transfer Of Income Without Transfer Of Asset (Sec. 60)

The ownership of asset is not transferred by him.

In ur amitabh case, we are not transferring the ownership.  just read these lines .....

he transfers interest income to Sharukh Khan, his friend without transferring the ownership of these debentures.

And the second section  61, we are not even making revocation transfer. As You don't want to name that property completely in the name of ur parents.

So section 60 and section 61 case questions doesn't arise na.
Even in gift deed u have to transfer the ownership na. And u can do the same without receiving consideration.

So, its totally depends upon ur choice whether to choose POA or gift deed.

sorry these lines got mismatched...

As You don't want to name that property completely in the name of ur parents.

the correct lines were

as you want to name that property completely in the name of ur parents for indefinite future.so the question of revocation transfer also doesn't arise.

https://www.livemint.com/2011/12/29182424/Small-steps-towards-transparen.html?h=B

Poa is not helpful incase of transfer of wonership

Gift deed is the only solution

Even now I also think u should go for gift deed, as u r totally confused abt POA....

In ur link , I think u had not noted down these points :-

• These were applicable to developer. You are not a developer in any sense .....
• You are not making any sell by transferring ownership to ur parents.You   r  signing POA not sale
• The proposed regulatory authority will be responsible for giving certificates of registration for projects or land that is at least 4,000 sq. m in size.  I don't think ur house can be so biggggg.....
• POA is too vast concept.. POA has many types. U r taking POA  as  a  general power of attorney which provides limited rights .

• Final sol can be for u is ......go for gift deed. It will be more easy + u won't doubt upon it.

Take care

I talked to some real estate professionals and they inform me that POA did not transfer ownership right on property to some one, it only allow to represent someone through POA. to sell property or do any activity on behalf of owner of property.

I think in sec 60, clubbing provision apply if I do not transfer my ownership to my parents.

"A.  Transfer Of Income Without Transfer Of Asset (Sec. 60)

Section 60 is applicable if the following conditions are satisfied:

    The taxpayer owns an asset ( yes I owned this property )
    The ownership of asset is not transferred by him. ( yes POA will not transfer ownership )
    The income from the asset is transferred to any person( my parents ) under a settlement, or agreement. ( I want to tranfer income here without transfering ownership )

If the above conditions are satisfied, the income from the asset would be taxable in the hands of the transferor ( i. e. me )

So to tax this income of rent in the hands of my parents, I need to transfer Ownership of my flat to my parents ( presently I am the owner )