Rules for those who are not registered owners of the property
Under the Income Tax Act, it has been stated that if the person receiving the rent is not the owner of the property. then income on rent will not be charged to tax under the head ‘Income from house property’, eg tenant taking rent from his tenant.
Official Income Tax Guidelines
Apart from this, it is mentioned in the official income tax guidelines. Certain cases where a person is not the registered owner of the property. But he will be considered the owner of that property and income tax will be levied on the income from the rent of the property. These are mentioned below.
1. If a person transfers his house property to his wife or husband or his minor child without sufficient consideration. So the transferor will be deemed to be the owner of the property.
2. The holder of immovable property is deemed to be the owner of the property included in the property.
Cases of other union member of co-operative society
3. In the case of a member of a company or other association of persons or a co-operative society to whom a building has been allotted or leased under the house construction scheme of the society, company or association. considered as the owner of the property.
4. Section 53A The person receiving the property by fulfilling the conditions of the Transfer of Property Act shall be deemed to be the owner of the case. Under Section 53A of the said Act, the following conditions are there that there should be an agreement in writing.
5. In case of lease of a property for a period exceeding 12 years, the lessee shall be deemed to be the owner of the property. Any right in the form of a lease for a month to month or for a period exceeding one year is not covered under this provision.