Advisory services for property gift deed from IT perspective
I'm looking for an Income Tax legal expert to advise on Property Gift Deed from an IT Perspective.
My wife owns a residential property (constructed building let out for rent ) in Bangalore since 2003, we took a home loan in my wife's name to buy the plot and construct the building.
When the purchase of the plot and construction was done I and my wife were NRIs and both were working. And I contributed as well to repay the home loan, but I don't have the bank transactions proof now. The home loan was completely repaid in 2010
I would like to enter as co-owner of the property through a gift deed from my wife, the objective is to get share the rental income between husband and wife. so that the outgoing income tax on rental income is minimal.
Since the purchase of the property was funded by a home loan taken in my wife's name, can we share the rental income (50:50) and pay our income taxes accordingly?
Asked 2 years ago in Taxation
Thanks for the replies.
let me just elaborate on the background of the property purchase transaction.
1.We were NRIs until Dec 2012 and both were employed
2. The Plot was purchased ( in 2003) without any loan when I and my wife were NRIs. We paid 50% of the cost through cheque from each of our NRE accounts, but the Plot was registered only in my Wife's name.
3. For the construction of the building the home loan was availed in my Wife's name (in the year 2005)
4. The Home loan EMIs was paid from my wife NRE account and was completely repaid by 2010 **Funds were transferred to my wife NRE account for home loan repayment from both of our individual Foreign Bank Accounts
In light of the facts can Husband enter into joint ownership of the property through a gift deed?
Asked 2 years ago
Noted the recent replies, but I would like to get clarified on Mr.Kallol Majumdar Ji reply as below
"income from the property gifted by the wife to husband shall be treated as income of the wife."
This is very old provisions of Income Tax.
Under the income tax law, the proportion of investment in the property will determine the ownership status in a property.
In my case, the husband and wife both working professionals, have paid 50% each to the seller while purchasing the property but the property was registered only in the Wife's name, so under an income tax law, the Husband should be deemed 50% owner of the property, is this correct?? and income arising from the house property should be taxed in the hands of the husband and wife
Asked 2 years ago