Deemed Owner u/s 27 of Income Tax Act 1961

According to Section 27 of Income-tax Act,  in following cases the assessee is deemed to be the owner of the house property, though not legal owner of the house property

1. Transfer to a Spouse [Section 27 (i)]:

If an individual transfers any house property to his or her spouse otherwise than for adequate consideration, the transferor in that case is deemed to be the owner of the property so transferred.

Exception : If  property is transferred to a spouse in connection with an agreement to live apart in this case transferee becomes owner of said house property

2. Transfer to a Minor Child [Section 27 (i)]:

If an individual transfers any house property to his or her minor child otherwise than for adequate consideration, the transferor in that case is deemed to be the owner of the house property so transferred.

Exception : If  a property is transferred to a minor married daughter.

Where the individual transfers cash to his/her spouse or minor child and the transferee acquires a house property out of such cash, the transferor shall not be treated as deemed owner of the house property. Such transaction will however, attract clubbing provisions discussed under Chapter 9.

3. Holder of an Impartible Estate [Section 27 (ii)]:

The holder of an impartible estate shall be deemed to be the individual owner of all properties comprised in the estate. The impartible estate, means  a property which is not legally divisible.

4. Member of a Co-operative Society etc. [Section 27 (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 a society/company/association, shall be deemed to be owner of that building or part thereof allotted to him although the co-operative society/company/association is the legal owner of that building.

5. Person in Possession of a Property [Section 27(iiia)]:

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 Property Act shall be deemed owner of that house property. This would cover cases where the (a) possession of property has been handed over to the buyer, (b) sale consideration has been paid or promised to be paid to the seller by the buyer, (c) sale deed has not been executed in favour of the buyer, although certain other documents like power of attorney/agreement to sell/will etc. have been executed. The buyer would be deemed to be the owner of the property although it is not registered in his name.

6. Person having right in a Property for a period not less than 12 years [Section 27 (iiib)]:

A person who acquires any right in or with respect to any building or part thereof, by virtue of any transaction as is referred to in section 269 UA(f) i.e. transfer by way of lease for not less than 12 years shall be deemed to be the owner of that building or part thereof. This will not cover the case where any right by way of a lease is acquired from month to month basis or for a period not exceeding one year.