It is easy to add names while purchasing a property, but the correct documentation is very important. Otherwise the tax department may be suspicious. Something similar happened with a woman from Mumbai. In fact, her husband bought a property worth Rs 6.75 crore, but the wife’s name was also added to the document. The husband gave the entire amount, but the tax department also sent a notice to the wife due to suspicion. Now the court made it clear that if the money is not invested, then the responsibility is not made.
What is the case?
A woman from Mumbai received notice from the Income Tax Department. He had a joint registry of property worth Rs 6.75 crore in his name. But the truth was that the woman did not invest any money in this entire deal. The money was completely given by the husband.
Doubt of wife’s income and tax department
The woman is a housewife and her annual income is just Rs 4.36 lakh. In such a situation, the Income Tax officials, seeing his name in the property deal of crores, suspected that tax evasion is being done. Therefore, notice was also sent to the wife.
High court decision
The Bombay High Court canceling the notice clearly said that if no one has put money in the purchase, then it is not even the responsibility of tax. The court admitted that the woman’s name was added to the property deed only for convenience.
Husband’s investigation still continues
While the wife’s notice is canceled, the tax department’s investigation on the husband is still going on. The court said that all the payment was made by the husband from his HDFC bank account. Therefore, now the department will question them.
This has happened before
The court cited its own old decision in the case. The same thing happened in Kalpita Arun Lanzer case (2024) where a tax notice imposed on non-composed joint owners was canceled.
Experts advice
Tax experts say that if you are buying the property under the name Joint, then write clearly in the deed about who contributed. If the money is a gift or loan, then enter it in writing and show the same stake in income tax returns.