Suppose i give a house on rent to my friend without accepting rent .. that is i give it for zero rent... so i have to pay incometax according to the municipal standard rent... what if i rent the house in blood relation with zero rent... then also i have to pay taxes according to municipal standard rent value amount? 2- if i give property or money to my wife then income from that asset would be clubbed into my income... What if my wife teaches tution in the house whose the owner is me... so the income from tution is clubbed to my income? As she is using my asset to generate income..? And also if she received 10 lakh from his brother or father and she starts business from that money than income from that money would be clubbed to mine? 3- if i give loan to my wife that is interest free loan and from that loan if she earns interest while keeping some amount in bank... than also it would be clubbed to my income? 4 - giving interest free loan to wife for business and than income generated would be clubbed to mine? 5 - if a man transfer asset to son's wife than income from that would be clubbed to man's income .. and what if man died than income to be clubbed to son's income or son's wife can pay individual tax
In both the above cases of point 1 the municipal value is required to be taken.
She is not directly using your asset to generate income therefore no clubbing will apply.
No clubbing in third point.
No
The income will be clubbed in father's income. After that it will be wife's income.
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Hi
1. Yes, deemed rent shall be taxable for all houses except house declared as self occupied property. Budget 2019 proposes to increase SOP to 2.
2. No, such incomes shall not be clubbed.
3. Yes, it would be clubbed.
4. What kind of business will she be doing. You can receive interest from her to avoid clubbing.
5. After death, it would be taxable in hands of the person who had received the gift i.e. son's wife.
Suppose my brother is using my shop or building whose the owner iam for the business purpose.. and earning the income... the question is do i have to pay the incometax on deemed rent.? As he is not paying rent to me? Deemed rent is applicable when we rent in blood relation? As any gift in blood realtion is not taxable
Yes deemed rent will be applicable.
Yes, deemed rent shall be taxable for all houses except house declared as self occupied property. Budget 2019 proposes to increase SOP to 2.
However, if you are doing any business using your own property, then deemed rent will not be applicable.
Hi,
1) Upto A.Y. 2019-20, up to one self-occupied house property is exempt from tax and from A.Y. 2020-21, two self-occupied HP are exempt.
2) Income arising to the wife out of the asset or money given by you will be clubbed in your hands. Income from tution is taxable in her hand only as it is generated from her skills and not from the property.
3) It will be taxable in her hands only.
4) Taxable in her hands.
5) In both the cases it would be clubbed.
Thanks
Hi,
1.Yes, If you own more than one property, the properties that are not considered self-occupied will be deemed to be given on rent, irrespective of whether you have given it for rent or not. In the event that you have not given a property for rent, you will have to calculate the deemed rental income on your property and pay the taxes due.
Budget 2019- "The benefit of self occupied property has been increased from one property to two house property. This means that the income tax on notional rental income will not be taxed on the second house property. However, if you have more than two self-occupied houses, then in such cases additional houses over and above will be taxed accordingly."
2. No, the income from tuition will not be clubbed in your income.
3. No, it will not be clubbed.
4.No. it will not be clubbed.
5. It will be clubbed in son's wife income.
Yes, you will have to pay taxes on deemed rent.
Hello,
1. Yes, deemed rent from the house would be taxable. Up to A.Y. 2019-20, one house would be considered SOP, from A.Y. 2020-21 two houses would be considered SOP, other houses would be either let-out or Deemed let-out.
2. No, her tuition income will not be clubbed in your income. Income from money gifted by her father or brother would be taxable in her hands only.
3. No clubbing of income.
4. No clubbing of the wife's business income.
5. After death, it will taxable in her hands only(son's wife)
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
Yes, deemed rent from the Shop/Building would be taxable.