I have a 2BHK+study flat in Faridabad, Haryana. The house registry is in my name. I am a salaried person come into 30% tax bracket, however my wife is a housewife. Currently the flat is on rent. So I need to pay tax on the rent which I get.
What is the legal way so that I take rent on my wife's account, since then we will not have to pay tax.
Also , in future when we sell the house, then I need not pay the tax.
- I do not have any issues transferring or making co-owner to my wife. What is the best way to avoid / minimise the taxes.
1 Answers
Hi,
Gifting the property or a share in the ownership can be a possible suggestion, as Gift transaction in your case is a tax-exempt one.
But, the rules of 'clubbing of income' are applicable in case a spouse gifts a share in the property to his/her spouse. So, it does not serve any purpose.
- Kindly note that rules of clubbing of income comes into picture if you gift a certain amount to your spouse, or minor children or Son’s wife. Any income earned by the recipient on the gift shall be clubbed with the income of donor (you).
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