Appeal against assessment order as joint property holder
Bhaskar Dey
(Querist) 25 March 2013
This query is : Resolved
The house we reside in was built about 30 years ago. Although it was financed (90%) by me but it was registered in my wife’s name. About three years back my wife purchased a flat in Kolkata. It was fully financed by my wife (salary and others). It was registered in joint names of my wife and my daughter. My wife’s name was in first position and my daughter’s name in the second. My daughter was a student at that time and did not contribute any money for the flat. At present my daughter gets monthly stipend (Rs.20000/-per month)for her Ph.D course, and she doesn’t file any return. The flat which my wife bought was not given for rent and mostly remained under lock. We occasionally go there and stay for a couple of days.
Recently Income Tax Assessment Officer had assessed that since my wife has two properties in her name, the Kolkata flat would be taken as rented and so demanded Rs.120000/- for one year’s rent @Rs10000/- per month plus fine and interest. This tax would come under the head ‘Income from House Property’. I know that AO was right according to the income tax rules. She has already paid the amount charged. But I have three questions:
1. I know (please correct me if I am wrong) that according to the property rules, even if an individual do not contribute any money and if his/her proportion is not mentioned in particular, he/she will be 50% owner of the property if he/she is a joint owner, i.e. if his/her name is included in the title deed. If it is true, can my wife appeal that since my daughter is a co-owner of the property, she should also share the tax burden by 50%? Can she claim refund of 50% of the extra tax paid?
2. Can CIT (appeal) reject her appeal by saying that since my daughter did not contribute any money to finance the flat, the whole tax burden will be on my wife and not on my daughter?
3. If CIT (appeal) accepts her appeal, will it cause any tax implication on my daughter? Will she have to file return? Will it cause any harm to her future? At present she gets about Rs.20000/- per month as UGC stipend which I assume is tax free. Out of Rs.20000/-, Rs.3000/- is deducted as Hostel Accommodation charge.
Thank you all in advance.
Devajyoti Barman
(Expert) 25 March 2013
You can prefer appeal in the high court against such order.
Your daughter is not liable for any tax burden.
Adv k . mahesh
(Expert) 25 March 2013
yes your daughter stipend is not taxable as she is student go for appeal and consult a local chartered accountant
