Transfer of SOP to spouse

Tax queries 679 views 3 replies

Rahul Jain

Student

26 Points Joined October 2009

Hi,

My fatther & my mother owned a Self Occupied House Property in the ratio 35 : 65. My father transferred his 35% share to my mother by making a gift deed on 17.08.08. The property now is 100% in the name of my mother.

My Query:

1. Is my dad still a deemed owner u/s 27 for income tax purpose?

2. My dad previously showed Flat a/c in his B/s at book value but in the current assessment he showed my mother's name instead of Flat a/c as receivable. Is this accounting treatment proper or should my dad have shown it as gift given to my mother ? & what treatment should my mother give for the same in her books ?

Replies (3)

Bonita

trainee

218 Points Joined July 2009

yes ur dad will be deemed owner as this transfer to spouse is without consideration

Rajeev

www.rkmco.com

985 Points Joined September 2009

Yes your dad is still the deemed owner .

I think proper accounting treatment should have been a reduction in capital from your dads capital account and credit the flat ( Capital Dr Flat Cr - dad's books )

Moms books - (Flat Dr Capital Cr )

Rahul Jain

Student

26 Points Joined October 2009

Thanks,

My question now is that my dad is a deemed owner to the extent of 35 % rite ? & also for Income Tax purpose his liability is to the extent of 35 % so if for the purpose of clearing dues if any, the property attached would be to the extent of 35 % right or is it that he is deemed owner to the extent of 100 % ?