What is Deemed Ownership

Person who are not legally the owner of property but are deemed to be for purpose of Business and Profession

Following are Deemed Owners

(a) TRANSFER TO SPOUSE

If a person transfers property to his/her spouse for inadequate  consideration

 then the person transferring be the owner and not the spouse .

(b) TRANSFER TO MINOR CHILD

 if a person transfers property to minor child for inadequate cinsideration

then it is taxable in the hands of transferor and not minor child.

Exception

However if property is transferred to minor married daughter then income is not taxable In the hands of transferor

(c) IMPARTIBLE ESTATE

In case of Impartible estate (property which can not be divided) the owner of such Impartible eatable will be deemed to be the owner of all properties in the estate.

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(d) MEMBER OF HOUSING COOPERATIVE SOCIETY

In case of  housing co-operative society the member who has been alotted the property shall be deemed to be the owner 

(e) PERSON HOLDING POWER OF ATTORNEY

In case of  Power of  Attorney (contract covered in T ransfer of Property Act) the buyer i.e. the person holding the power of attorney will deemed to be the owner even though legally he is not the owner 

(f) LEASE AGREEMENT >12 YEARS WHICH IS NOT TAXABLE

 In case of lease agreement of at least 12 years the lessee is deemed to be the owner .

 Exception:-This does not cover case where lease agreement is renewable on a month to month basis or for a period not exceeding 1 year