Owner is a person who legally owns the house-property. He is chargeable to tax in respect of his property. But in some cases what happens is some person shall be treated as the owner of the house-property even though the legal owner is some other person. This is called as “deemed ownership” under section-27, of the Income Tax Act, 1961. Accordingly, the following person shall be deemed to be the owner of the house-property and shall be taxed in the hands of the deemed owner.
As Per Section-27 (i) (ii) (iii) (iiia) (iiib), Of the Income Tax Act, 1961-
27. “Owner of house property”, “annual charge”, etc., defined.
For the purposes of Sections 22 to 26-
(i) an individual who transfers otherwise than for adequate consideration any house property to his or her spouse, not being a transfer in connection with an agreement to live apart, or to a minor child not being a married daughter, shall be deemed to be the owner of the house property so transferred;
(ii) the holder of an impartable estate shall be deemed to be the individual owner of all the properties comprised in the estate;
(iii) a member of a co-operative society, company or other association of persons to whom a building or part thereof is allotted or leased under a house building scheme of the society, company or association, as the case may be, shall be deemed to be the owner of that building or part thereof;
(iiia) a person who is allowed to take or retain possession of any building or part thereof in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 2 (4 of 1882 ), shall be deemed to be the owner of that building or part thereof;
(iiib) a person who acquires any rights (excluding any rights by way of a lease from month to month or for a period not exceeding one year) in or with respect to any building or part thereof, by virtue of any such transaction as is referred to in clause (f) of section 269UA, shall be deemed to be the owner of that building or part thereof;
(iv) “annual charge” means a charge to secure an annual liability, but does not include any tax in respect of property or income from property imposed by a local authority, or the Central or a State Government;
(v) “capital charge” means a charge to secure the discharge of a liability of a capital nature;
(vi) taxes levied by a local authority in respect of any property shall be deemed to include service taxes levied by the local authority in respect of the property.