Deemed Ownership – Section 27

Confused in complicated laws? Take our GST consultation services to get your issues solved from GST experts. Click here to know more.

In the following cases the person is deemed to be owner of the property even if they are not the legal owners of the property:-

1) An individual who transferred his property without adequate consideration to his or her spouse (otherwise than in connection with an agreement to live apart) his minor child (not being married daughter) is deemed to be owner of that property.
If an individual transfers another asset and his spouse or minor child purchase house property from that asset, then such individual is not treated as deemed owner.

For Ex:- If  Mr. X gifts Rs. 5,00,000 to his wife and his wife purchases a house property from that Rs. 5,00,000 then Mr. X is not treated as deemed owner and income from such property is taxable in hands of his wife.

2) If property is allotted by company/co operative society to its shareholders/members, then technically the company/cooperative society may be the owner. But the shareholder/member to whom property is allotted is deemed to be owner of property.

3) If buyer has taken the possession of the property without getting the sale deed registered is deemed to be owner of the property.
A person who is allowed to take or retain possession of any building (or part thereof) in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882, is also  deemed as the owner of that building (or part thereof).

4) A person who acquires any rights (excluding any rights by way of a lease from month to month or for a period not exceeding one year) in or with respect to any building (or part thereof) by virtue of any such transaction as is referred to in section 269UA(f) [i.e. if a person takes a house on lease for a period of 12 months or more, Persons who purchase properties on the basis of Power of Attorney]

Confused about complicated laws? Take our GST consultation services to get your issues solved from GST experts. Click here to know more.

Read More Articles

Section 44ADA – Presumptive Taxation Scheme for Professionals

From financial year 2016-17, a new Section 44ADA is introduced for presumptive income for professionals. This section is similar to section 44AD for traders. Under this section professionals such as legal, medical, engineering, architect, accountancy, technical consultancy, interior decoration or any

Read Article »

Registration Under GST

Topic Covered in this Article Persons required to register compulsorily Documents Required for Registration Fees for Registration Voluntary Registration Time Limit for Registration Effective Date of Registration Requirements for Registration Can a person take more than one GSTIN Things that

Read Article »

GST on Import

Article 269A of constitution mandates that import of goods or services in India is considered as Inter-state trade. Therefore, import of goods or services is considered as interstate supply and is liable for payment of IGST. IGST on the import

Read Article »

Table of Contents

Subscribe

We will send updates relating to GST only

(No spam, you can unsubscribe anytime)