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AAFM CTEP Exam - Topic 2 Question 63 Discussion

Vikrant Juneja gifted his house property to his wife in year 2007. Mrs. Juneja then lets out this house @ Rs. 5000 per month. The income from such house property will be taxable in the hands of:
C) Vikrant, as he will treated as deemed owner & liable to pay tax
A) Mrs. Juneja
B) Vikrant. However income will be computed first as Mrs. Juneja's income and thereafter clubbed in the income of Manish.
D) Anyone amongst both of them, whose income is greater.

AAFM CTEP Exam - Topic 2 Question 63 Discussion

Actual exam question for AAFM's CTEP exam
Question #: 63
Topic #: 2
[All CTEP Questions]

Vikrant Juneja gifted his house property to his wife in year 2007. Mrs. Juneja then lets out this house @ Rs. 5000 per month. The income from such house property will be taxable in the hands of:

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Suggested Answer: C

by Dell at Apr 05, 2025, 09:15 PM

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Ahmed
6 months ago
Anyone's guess, but I think it's clear-cut!
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Cristy
6 months ago
I thought it would be Vikrant since he gifted it.
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Armando
6 months ago
I agree, she owns the property now!
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Noel
6 months ago
Wait, can Vikrant still be taxed on it?
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Nancey
6 months ago
It's definitely Mrs. Juneja's income.
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Carisa
7 months ago
I feel like the answer could be either of them, but I lean towards Mrs. Juneja since she is the current owner of the property.
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Tomas
7 months ago
This question reminds me of a similar practice one where the income was taxed based on ownership. I think it might be Vikrant in this case.
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Mohammad
7 months ago
I'm not entirely sure, but I remember something about deemed ownership rules that might apply to Vikrant.
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Mitsue
7 months ago
I think the income should be taxable in Mrs. Juneja's hands since she is the one receiving the rent.
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Nida
8 months ago
Okay, I think I've got it. The income from the rented property will be taxable in the hands of Mrs. Juneja since the property was gifted to her. Option A seems to be the right choice.
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Salena
8 months ago
I'm not entirely sure about this one. I'll need to revisit my notes on the taxation of income from gifted properties to make an informed decision.
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Avery
8 months ago
The key here is to identify who the rightful owner of the property is for tax purposes. Based on my understanding, I believe option C is the correct answer.
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Lettie
8 months ago
Hmm, I'm a bit confused about the concept of "deemed owner" mentioned in one of the options. I'll need to review that before selecting an answer.
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Edward
8 months ago
This seems like a straightforward question on the taxation of income from gifted property. I'll carefully read through the options and think about the relevant tax laws.
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Sarah
1 year ago
Haha, Vikrant should have just rented the house to his dog instead. No tax on that, right?
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Denise
1 year ago
Haha, that would have been a clever way to avoid taxes!
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Stephanie
1 year ago
C) Vikrant, as he will treated as deemed owner & liable to pay tax
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Brock
1 year ago
A) Mrs. Juneja
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Lindsey
1 year ago
But what if Vikrant is treated as the deemed owner? Would the income still be taxable in Mrs. Juneja's hands?
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Cordelia
1 year ago
I agree with Dick. Mrs. Juneja received the gift of the house property, so the income should be taxable in her hands.
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Skye
1 year ago
D makes the most sense to me. The income should be taxed in the hands of whichever spouse has the higher total income.
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Vallie
1 year ago
Exactly. The tax liability will fall on the spouse with the higher income, regardless of who owns the property.
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Bettyann
1 year ago
So, it doesn't matter who technically owns the property, it's all about the total income of each spouse.
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Kimbery
1 year ago
Yes, that makes sense. It's based on who has the higher income overall.
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Thurman
1 year ago
I think D is the correct option. The income should be taxed in the hands of the spouse with the higher total income.
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Dick
1 year ago
I think the income will be taxable in the hands of Mrs. Juneja.
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Wava
1 year ago
I think the answer is A. Mrs. Juneja should be taxed on the rental income, since the property was gifted to her.
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Iesha
1 year ago
C) Vikrant, as he will treated as deemed owner & liable to pay tax
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Janey
1 year ago
That's correct. Since the property was gifted to her, she will be taxed on the rental income.
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Alaine
1 year ago
A) Mrs. Juneja
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