A person gifts a let-out house to his minor son. Whose income is the rent under the Income-tax Act, 2025?
Question and options
A person gifts a let-out house to his minor son. Whose income is the rent under the Income-tax Act, 2025?
The donor’s, as deemed owner under section 25
The son’s, but clubbed with a parent under section 99
The son’s, as he is now the legal owner
The parent’s with the greater total income
Answer and explanation
Section 25(a) of the Income-tax Act, 2025 treats an individual who transfers a property without adequate consideration to a minor child, other than a married daughter, as its owner, so the donor is taxed on the rent as his own house-property income. Clubbing under section 99 is not needed because the deemed-owner rule applies first.
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