DEEMED OWNERSHIP (SECTION 27) UNDER INCOME TAX ACT
As per Section 27 there are some persons who are not the legal owners of a property but still deemed to be the owners.Following Persons are Deemed Owners of House Property:-
An individual who transfers House Property to his/her Spouse: If an individual transfers any House Property to his or her spouse otherwise than for adequate consideration and it is not related to an agreement to live apart, the transferor in that case is deemed to be the owner of the House Property transferred.
An Individual who transfers House Property to his/her Minor Child: If an individual transfers any House Property to his/her minor child otherwise than for adequate consideration, the transferor in that case is deemed to be the owner of the House Property transferred. However where transfer is to a minor married daughter then transferor shall not be treated as the deemed owner of the House Property.
Note: Where cash is transferred to Spouse/Minor child and property is purchased by the transferee (Spouse or Minor Child) out of such cash then transferor shall not be treated as the deemed owner of such property. However Income arising out of such property shall be clubbed with the income of ransferor.
Holder of an Impartible Estate: The term Impartible Estate means the Property which is not legally divisible. The holder of Impartible estate will be treated as the owner.
Member of a Co-Operative Society: A member of a co-operative society, AOP, to whom a building or part thereof is allotted or leased under a House Property scheme of such society/AOP shall be deemed to be the owner of that building or part thereof although the co-operative society/AOP is legal owner of that building.
Person in Possession of Property: A person who is allowed to take or retain the 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 the Property Act shall be deemed owner of that Building or Part thereof. This would cover cases where:

• Possession of property has been handed over to the buyer.
• Sales consideration has been paid or promised to be paid to the seller by the buyer.
• Sale deed has not been executed in favour of the buyer

The buyer would be deemed to be the owner of the property although it is not registered in his own name.
Person having right in a Property for a period not less than 12 years: A person who acquires any right in or with respect to any building by way of lease for a period not less than 12 years shall be deemed to be the owner of that building or part thereof.
This Article has been Shared by Student of ICAI Palak Aggarwal. She can be reached at [email protected]