Property bought in name of wife

As such I don't see any tax implications on you or your wife because of this transaction as you have only purchased a land in India. However at the time of purchase the seller would have deducted TDS of your wife and so I would suggest you to file the return of income and claim TDS refund of such TDS as you don't have any taxable income in India.

Regarding gift I would say that in case husband gifts any money to wife and then wife earns any sort of income from such money it will be taxed in the hands of husband because of clubbing provision. However there are no tax on giving such gift.

On such transaction only a query can be raised by income tax to show the source of such investment if it's big (for eg: 50 lakh or above) as she has not filed any ITR. Other than that I don't find any queries as such.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi,

Hope you are doing well !!

1. No tax implications on said transaction.

2. As you have provide money to your spouse  and that money is invested by the spouse and a certain income is generated (from such money that you gave your spouse).The income that arises from such investment done by her can be clubbed to your income. However, if your spouse reinvests the income portion and earns further income then such income may not be clubbed with your taxable income.

3. It is available that to file ITR and claim TDS refund.

Thanks & Regards,

Payal Chhajed

- In your case, you are deemed owner of the house which is in the name of your wife. All the income whether rent or capital gain will be taxable in your hand. Please ensure in the year of purchase of the property, no TDS was deducted by the purchaser. If it was deducted then it should be shown in your ITR of that relevant assessment year. For F.Y. 2017-18, you still can file the ITR.

You can get your wife’s ITR filed but there is no tax on gift received from husband.

else, you can be relaxed, if you receive any intimation or notice asking non filing of ITR, we can respond.

there is no tax if you are NRI transfers money to India but if you earn something in India having NRI tax status then there is tax on your earned income in India.

1 .The source of funding for purchasing the property is very important. For example, if the property is registered in the name of the wife  and you are planning on letting out the flat, rental income from this property will be treated as the husband's income and taxed at the applicable rate.

2. Moreover, purchasing a house in the name of the wife by applying your own funds means that you are using her as a name-lender and this is a 'benami transaction' and hence illegal. The only way you can make this transaction legal is by gifting the money to the wife to enable her to purchase the property in her name. But, then again, the utility of this is lost because of the clubbing provision, which requires the property income to be added to your income for income tax 

3.  If you want to buy a house in your wife's name but don't want the rent to be taxed as your income, you can loan her the money in exchange for her jewellery of the same amount in your favour. Then the rental income from that house would not be taxable to you.

4. There is no restriction to transfer any amount of money from your NRE Account to your wife’s resident account. But your wife could not transfer any money from her account to your NRE Account. Because NRE account money have repatriation rights.

5. You are not require to file tax return in India if there is no income accrued of arise in India. Your wife will be required to file return in India if any income generated in her hands. Would recommend your wife to file return in India even if no income.

6. NRIs also have to pay a withholding TDS at the rate of 1% if your buy a property worth more than Rs 50 lakh

7. Under the exchange control law, an NRI is permitted to purchase immovable property in India other than agricultural land or plantation property or farm house

8. You need to prepare Gift deed between you and your wife to avoid any litigation 

Ajit Jain. Founder NRI MiTRA. +[deleted]

Hi,

Firstly, for the income tax purpose both the properties will be considered as your properties and any income from the property will be taxable in your hands.

1. As such there are no direct implications till the time you sell the properties. However, income from such properties, if any, shall be taxable in your hands in India.

2. There's no tax on gifts in India.

3. No action is required.

I understand that you have been non-resident in India and all the income have been earned by you outside India.  Now in 2016 and 2017, you/ your wife have just made some purchases.  There is no income earned by you or your wife from these assets as income would arise on sale or rent, which has not happened.  Since, no income has been earned there is no tax evasion and hence at this stage there is no issue.

You just need to understand that since entire money for purchase of assets are earned by you; you are the real owner of this assets for tax purpose.  Capital gains, any income earned in future would be taxable in your name.  Disclosure of asset are required if your taxable income exceeds 50 lakhs. Filing of return is mandatory if your Indian income exceeds 250,000.  There are certain TDS compliances to be done when a property is purchased, hope those compliances were done.

Hi,

1. There are no income tax implications expect clubbing.

2. No tax.

3. No action is required.

Hi

1.Since you paid for the transaction you are deemed owner of both the  properties.Clubbing provision will apply in case of any income genereted from these properties,it will be taxed in your hands.

2. No Tax on gift,It is advisable to have proper gift deed to avoid departmental inquiries.

3.File ITR

Hope it helps