Understanding Property Ownership
When a property is purchased with funds transferred between spouses, it’s crucial to determine the ownership structure. This impacts how you report the transaction
in your ITR. Understand whether the property is jointly owned or solely in your wife's name. Consider legal documentation like the sale deed which usually details ownership and the source of funds.
Declaring the Source Funds
The key aspect is clearly showing the source of the funds. If you transferred money to your wife and she used it to buy the flat, you must declare this in your ITR. You'll need to provide details of the transfer. Keep records of the transaction, as these will be required during filing.
ITR Filing Process
When filing your ITR, you will need to specify the ownership details of the property. If it is jointly owned, both spouses declare their respective shares. If it’s solely owned by your wife, she declares the entire property in her ITR. Accurately reflect the source of the funds. Keep all documents ready.
Tax Implications & Deductions
Understand the tax implications based on the ownership structure. If both of you own the property, each can claim tax benefits. Ensure you are aware of the relevant sections for deductions. Consult a tax advisor for personalized advice on maximising your tax benefits and staying compliant.
