Purchase of home in house wife name.

If you buy in your wife's name who doesn't file return of income or has no income source then you surely will receive notice asking for source of such investment but you can explain it.

However in that case the renting income and all will be clubbed in your income so it's better to not complicate transaction and take it in your name instead.

While showing such rent income you'll get a 30% standard deduction as well as deduction of 100% home loan interest from such renting income.

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Hello,

If you are going to buy the property in your wife's name with investment following from your side, Clubbing Provisions would be applicable for the rental income earned from such property.\

If you buy the property in your name, the rental income would be taxable in your hands. Against such income, you would get a standard deduction of 30%, deduction for municipal tax paid and full deduction for interest paid on the home loan.

I hope that this answer satisfies your requirements. 

Regards,

CA Hunny Badlani

Hi

Case 1

If you're funding the property, all the income earned thereafter from such property shall be clubbed and taxable in your hands.

Case 2

The interest paid shall be available for deduction from the rental income. 

30% of rents received is a standard deduction under the head house property. Then, interest deduction is allowed.

Dear Sir,

Hope you are doing well !!

1. Any income arising from the property would be taxable in your own hands due to clubbing provision.

2.. You can deduct the standard deduction of 30% of the income and the interest on the loan and municipal taxes paid during the year.