Taxation - Income TaxQuestion 5576 of 146
All Questions AMr. A - Nil and Mrs. A - ` 1,36,640 under income from HP and ` 15,000
under IFOS.
BMr. A - ` 2.15 lakh under clubbing provisions and Mrs. A - NIL
CMr. A - ` 2 lakh under income from HP and Mrs. A - ` 15,000 under IFOS.
DMr. A - ` 1,36,640 under income from HP and Mrs. A - ` 15,000 under
IFOS.
(2 Marks)
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Correct Answer
✅ Option A — Mr. A - Nil and Mrs. A - ` 1,36,640 under income from HP and ` 15,000 under IFOS.
All Options:
- AMr. A - Nil and Mrs. A - ` 1,36,640 under income from HP and ` 15,000 under IFOS. ✓
- BMr. A - ` 2.15 lakh under clubbing provisions and Mrs. A - NIL
- CMr. A - ` 2 lakh under income from HP and Mrs. A - ` 15,000 under IFOS.
- DMr. A - ` 1,36,640 under income from HP and Mrs. A - ` 15,000 under IFOS. (2 Marks)
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Detailed Solution & Explanation
Under Section 27(i) of the Income-tax Act, 1961, the transferor is not deemed to be the owner of the house property if the transfer is made to the spouse in connection with an agreement to live apart.
Similarly, the clubbing provisions under Section 64(1)(iv) do not apply to transfers made with an agreement to live apart.
Consequently, both the rental income and the interest income are taxable in the hands of the transferee, Mrs. A.
Taxable Income from House Property =
Interest Income (taxable under IFOS) =
Mr. A's taxable income from these sources is Nil.
Hence, **Option A** is the correct answer.
Similarly, the clubbing provisions under Section 64(1)(iv) do not apply to transfers made with an agreement to live apart.
Consequently, both the rental income and the interest income are taxable in the hands of the transferee, Mrs. A.
Taxable Income from House Property =
Interest Income (taxable under IFOS) =
Mr. A's taxable income from these sources is Nil.
Hence, **Option A** is the correct answer.
Key Concepts to Understand
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