A beneficiary owner is the person who gets to enjoy the ownership benefits even though the title of some form of the property belongs to other individual. Only a beneficiary owner is required to file the return in regarding any property.
Beneficiary owner
I bought a house under my name and my wife name. My wife is not employed. I fully financed the amount. Now I am the beneficiary owner. I am getting the rental income and I do income tax return filing under my name. My question is. I want to file Nil Income Tax return for my wife. Is there any provision to state that I have a jointly owned property and Income Tax Return is filed under beneficiary owner my husband. Please advise that above provision of the remark in the nil return is possible. Thanks Shanmugasundaram
Asked 1 year ago in Income Tax
u/s 64 of the Income Tax Act read with Section 27 of the Income Tax Act, if there is income in the hands of the spouse on an asset transferred without consideration or with inadequate consideration, the income in the hands of such individual will be clubbed with the income in the hands of the transferor. In your case, even if the rental income is received by your wife, it should have been included in your income. Now you've rightly considered the rental income in your hands.
You can file Nil return for your wife However, please check with AIS (Annual Information Statement) for any reported transactions which you may be required to consider. Further, please check whether filing of the return is mandatory under the proviso to 139(1) for occupation of the house exceeding the specified floor area.
Hey,
When you own a jointly owned property with your spouse, and you are the sole contributor to the income generated from the property, you can file a Nil Income Tax return for your non-employed wife. However, it's important to follow the correct procedures and declarations. Here's how you can go about it:
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Property Ownership: Since you and your wife jointly own the property, ensure that the property title and ownership are correctly registered in both your names.
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Rental Income: If you are the sole beneficiary of the rental income and you are managing the property, it's essential to have proper documentation in place, such as a rental agreement that clearly states you as the recipient of the income.
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Income Tax Return Filing:
a. When you file your income tax return, you can declare the rental income as your own, even if the property is jointly owned. This is acceptable as long as the income-sharing arrangement is mutual and understood between you and your spouse.
b. Your wife, being a non-employed spouse, can file a Nil Income Tax return. In her return, she should declare that she has no taxable income and can provide details of her husband's income. There is a provision to mention that she has jointly owned property, and the income is being reported by her spouse.
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Form ITR-1 or ITR-4: Depending on the complexity of your income sources, you may need to use Form ITR-1 (Sahaj) or Form ITR-4 (Sugam) for your income tax filing. Ensure you accurately report your income from the jointly owned property in the appropriate section of the form.
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Remarks/Notes: In the Nil Income Tax return, you can add a remark or note to clarify that your wife has no taxable income, and the rental income from the jointly owned property is being declared in your income tax return.
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Documentation: Keep records of property ownership, rental agreements, and any other relevant documents to support your tax filings.
Hope you find this answer useful . Please give your valuable feedback.
Hello,
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Ownership of the Property: You mentioned that the house is jointly owned by you and your wife, but you are the beneficiary owner. This means that even though both of your names are on the property, you are the one who is legally entitled to the rental income from the property.
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Tax Implications: As per the Income Tax Act in India, rental income is generally taxed in the hands of the person who is receiving the income. In your case, since you are the beneficiary owner and you are receiving the rental income, you are correctly reporting and paying taxes on this income.
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Mandatory Filing: Confirm whether filing a tax return for your wife is mandatory in her case. Some individuals may be exempt from filing returns, especially if their income is below the taxable limit.
Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.
Thank you.
Shubham Goyal
- In your ITR, only you are required to pay tax on entire rental income and disclose 100% ownership in the rented property
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