Personal Finance
Accordingly, income from a house property shall be liable to tax in the hands of the person who invested in the house property
Updated : Nov 15, 2018, 06:35 AM IST
Income tax Act provides for clubbing of income in the hands of the person who is the beneficial owner of the asset from which the income is accruing. Accordingly, income from a house property shall be liable to tax in the hands of the person who invested in the house property.
Thus, if the property is registered in the name of your wife, but without her contribution, then the rental income from the property shall be clubbed in your hands as you shall be treated as the 'deemed owner' of the property.
You can claim the benefits entailed in the Income Tax Act, 1961 (Act), upon undertaking the investments. If the total taxable income becomes equal to or falls below the maximum threshold limit as provided under the Act, no TDS may be withheld by the employer.
Since this query relates to US tax laws, it is advisable to seek help of a US tax law consultant.
The writer is director, Nangia Advisors LLP