Father's income diverted to son by hibba
MOHAMED FIROZ
(Querist) 28 February 2013
This query is : Resolved
i OWN A PROPERTY FROM WHICH I AM GETTING A ANNUAL RENTAL INCOME OF RS. 5 LAKHS. UNDER THE ISLAMIC LAW, I HAVE GIVEN 1/3 RD OF THIS PROPERTY TO TWO OF MY SONS BY HIBBA ON A PIECE OF UNSTAMPED PAPER TWO YEARS BACK HOLDING 1/3RD TO MYSELF. I AM GIVING THE RENTAL RECEIPT TO THE TENANTS IN MY NAME ONLY. I AM FILING MY INCOME TAX RETURN SHOWING RS. 1.66 LAKHS AS MY RENTAL INCOME PLUS MY OTHER INCOME AND PAYING MY TAX DUE. MY SONS ARE NOT INCOME TAX ASSESSEE AND HAVE NOT FILED THEIR TAX RETURNS BUT HAVE GOT PAN CARDS. SINCE THEIR SHARE OF THE RENTAL INCOME IS BELOW THE TAX LIABILITY LIMIT SHOULD THEY ALSO FILE THEIR TAX RETURNS? HOW WILL THE TOTAL RENTAL INCOME BE TREATED?
Anirudh
(Expert) 01 March 2013
According to Islamic law, you could not have given more than 1/3rd of the property by way of HIBBA.
Then how did you give 1/3rd of the property to each of your two sons (thereby giving by HIBBA 2/3rd of the property which is beyond the limit prescribed in islamic law)?
Are your sons major or minor?
Khaleel Ahmed Mohammed
(Expert) 01 March 2013
Did the transfer of property recorded at Municipal Office.If not recorded , the Hiba have no effect and you will be liable to pay all taxes including income tax.
Anirudh
(Expert) 02 March 2013
You have not answered my query as to how you gave more than 1/3rd of your property through WILL, when only maximum 1/3rd of the property can be given by WILL under islamic law.
Raj Kumar Makkad
(Expert) 06 March 2013
Your similar query has already been resolved then why to raise it again?
MOHAMED FIROZ
(Querist) 07 March 2013
THANKS FOR THE REPLIES.
BUT I UNDERSTAND THAT AS PER ISLAMIC LAW A PERSON CAN GIFT BY HIBBA ANY QUANTUM OF PROPERTY TO HIS ISSUES IN HIS LIFETIME. ONLY WASEEYAT OR WRITING A WILL IS NOT PERMITTED.
MOREOVER I HAVE SEVERAL OTHER PROPERTIES AND THIS 1/3RD SHARE OF MY GIFT IS WELL BELOW MY 1/3RD OF MY WHOLE PROPERTIES.
AS YOU HAVE RAISED A NEW ISSUE PLEASE ENLIGHTEN ME ABOUT WHETHER GIFTING BY HIBBA TO PROGENY OR OTHERS HAS ANY RESTRICTIONS ?
AS SUCH MY QUESTION EARLIER WAS WHETHER BASED ON MY ORAL HIBBA, MY SONS SHARE OF RENTAL INCOME WILL BE VALID BEFORE TAX AUTHORITIES SINCE THEY ARE NOT I.T. ASSESSEES SO FAR
