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CA Intermediate · Taxation · Income from House Property

Mr Rohit Bansal transferred his house in Jaipur to his wife Neha by way of gift, without any consideration. There is no agreement to live apart. Neha lets out the house to a tenant and receives the rent. For tax year 2026-27, who is chargeable to tax under the head income from house property in respect of this house, and why?

Rohit is chargeable. When an individual transfers a house to his spouse without adequate consideration and not under an agreement to live apart, he is treated as the deemed owner. The income from the property is therefore computed in his hands as house property income, although Neha receives the rent.

  1. ARohit, because he is the deemed owner when a house is transferred to the spouse without adequate considerationCorrect
  2. BNeha, because she is the legal owner and receives the rent
  3. CRohit and Neha equally, because ownership is treated as shared
  4. DNeither, because a gift between spouses is exempt from tax

Explanation

An individual who transfers a house property to his or her spouse without adequate consideration, and not under an agreement to live apart, is treated as the deemed owner of it. So Rohit is taxed on the house property income, even though the rent is received by Neha. Option B ignores the deemed owner rule. Option D confuses the exemption of the gift itself with the taxability of income from the asset.

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