AAFM Exam CTEP 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:

AMrs. Juneja

BVikrant. However income will be computed first as Mrs. Juneja's income and thereafter clubbed in the income of Manish.

CVikrant, as he will treated as deemed owner & liable to pay tax

DAnyone amongst both of them, whose income is greater.

Show Suggested Answer

Suggested Answer: C

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

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Sarah

2 months ago

Haha, Vikrant should have just rented the house to his dog instead. No tax on that, right?

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Denise

1 months ago

Haha, that would have been a clever way to avoid taxes!

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Stephanie

1 months ago

C) Vikrant, as he will treated as deemed owner & liable to pay tax

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Brock

2 months ago

A) Mrs. Juneja

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Lindsey

2 months 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

2 months 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

2 months 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 months 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 months 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

2 months ago

Yes, that makes sense. It's based on who has the higher income overall.

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Thurman

2 months 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

2 months ago

I think the income will be taxable in the hands of Mrs. Juneja.

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Wava

2 months 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 months ago

C) Vikrant, as he will treated as deemed owner & liable to pay tax

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Janey

2 months ago

That's correct. Since the property was gifted to her, she will be taxed on the rental income.

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Alaine

2 months ago

A) Mrs. Juneja

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