Transferring house to wife

You cannot sale it below the circle rate applied over there.

why dont you gift it to your wife?

just form HUF to avail the benefit of slab rate of income tax from rental income.

 

Sec 50c will get attract. And very sorry that our income tax don't consider natural love and affection as adequate consideration for trf of asset to wife....so clubbing provision too gets attract

U can better gift it to your wife

According to me in case of gift also it will attract clubbing provision Correct me if i wrong

It will attract clubbing...

You can sell the property to your wife at normal price say Rs.45lacs and receive every month installments of loan n pay 10 lac as initial consideration... and the balance in EMI's.. - consider the loan as UN secured loan at nil rate of interest. -I hope in such situation no clubbing provision attracts. - any way she have source of income from rent to declare n pay back loan amt. -

Dear Mr. Godghate

 

three provisions of income tax will get attracted to your question i.e. section 27 (i), 56 (2) and 64 (1)(iv) 

 

section 27 (i) says that if any property transferred to you spouse without adequate consideration than transferrer will the the deemed owner of that property. HENCE YOU WILL BE DEEMED OWNER IN YOUR SITUATION.

 

Section 56(2) says that if an individual or HUF receive gift from relative than it will not be taxable  in the hands of recipient of gift. HENCE YOUR SPOUSE WILL NOT BE LIABLE TO TAX FOR SUCH GIFT OF 45 LAC (40 LAC IF SHE PAYS ONLY 5 LAC AS CONSIDERATION)

 

Section 64 (1)(iv) if any property transfered to spouse without adequate consideration than income from such property will be taxable in the hands of transferer HENCE SUCH RENTAL INCOME WILL BE TAXABLE IN YOUR  HAND EVEN YOU GIFTED YOUR PROPERTY TO SPOUSE. 

 

Conclusion :

1. Rental income is always taxable in your hand unless and until she pays full amount of consideration to you.

 

2. answer given by Naveen CN is good but not foolproof 

 

let me know if i am wrong

Dear Mr. Godghate

 

three provisions of income tax will get attracted to your question i.e. section 27 (i), 56 (2) 

and 64 (1)(iv) 

 

section 27 (i) says that if any property transferred to you spouse without adequate consideration than transferrer will the the deemed owner of that property. HENCE YOU WILL BE DEEMED OWNER IN YOUR SITUATION.

 

Section 56(2) says that if an individual or HUF receive gift from relative than it will not be taxable  in the hands of recipient of gift. HENCE YOUR SPOUSE WILL NOT BE LIABLE TO TAX FOR SUCH GIFT OF 45 LAC (40 LAC IF SHE PAYS ONLY 5 LAC AS CONSIDERATION)

 

Section 64 (1)(iv) if any property transfered to spouse without adequate consideration than income from such property will be taxable in the hands of transferer HENCE SUCH RENTAL INCOME WILL BE TAXABLE IN YOUR  HAND EVEN YOU GIFTED YOUR PROPERTY TO SPOUSE. 

 

Conclusion :

1. Rental income is always taxable in your hand unless and until she pays full amount of consideration to you.

 

2. answer given by Naveen CN is good but not foolproof 

 

let me know if i am wrong