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Tax Implications of Deemed Ownership: Income from House Property Not Registered in Your Name

  • Writer: tax comply
    tax comply
  • Mar 18, 2023
  • 2 min read

Updated: Jul 9

In certain situations, even if a property is not registered in your name, you may be liable to pay income tax on the rental income earned from that property. This is known as deemed ownership, where you are treated as the owner of the property for tax purposes, even though you may not be the registered owner.


Deemed owner refers to a person who is not the registered owner of a property but is treated as the owner for tax purposes. Rental income from such properties is charged to tax in the hands of the deemed owner. Here are the different scenarios where a person can be deemed as the owner of the property:

  1. Transfer of house property to spouse or minor child without adequate consideration - If an individual transfers his/her house property to his/her spouse or minor child without adequate consideration, then the transferor will be deemed as the owner of the property.

  2. Holder of impartible estate - The holder of an impartible estate is deemed as the owner of the property comprised in the estate.An impartible estate refers to a type of property ownership where the property cannot be divided among heirs. In other words, the property is inherited as a whole by a single heir, who becomes the sole owner of the property.

  3. Allotment of property under house building scheme - A member of a co-operative society, company or other association of persons to whom a building (or part of it) is allotted or leased under a house building scheme of the society, company or association, as the case may be, is treated as a deemed owner of the property.

  4. Property acquired under Section 53A of the Transfer of Property Act - A person acquiring property by satisfying the conditions of Section 53A of the Transfer of Property Act is treated as a deemed owner of the property. These conditions include a written agreement, payment or willingness to pay the purchase consideration, and taking possession of the property.

  5. Lease of property for a period of not less than 12 years - If a property is leased for a period of not less than 12 years, the lessee is deemed to be the owner of the property. However, this provision does not cover any right by way of lease from month-to-month or for a period not exceeding one year.

In summary, a deemed owner is a person who is not the registered owner of a property but is treated as the owner for tax purposes. This includes scenarios such as transferring property to a spouse or minor child without adequate consideration, being allotted property under a house building scheme, acquiring property under Section 53A of the Transfer of Property Act, or leasing a property for a period of not less than 12 years.


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