If you have transferred a commercial property to your wife without any consideration (i.e., as a gift), the rental income received by her will not be taxed in her hands but will be clubbed with your income under Section 64(1)(iv) of the Income Tax Act, 1961.

How the Rental Income is Taxed?

🔹 Clubbing of Income: Since the transfer was made without adequate consideration, the rental income will be added to your taxable income and taxed as “Income from House Property” in your hands.

🔹 Standard Deduction: Under Section 24(a), you can claim a 30% deduction on the rental income as a standard deduction.

🔹 Interest on Loan Deduction: If there is an outstanding home loan on the property, you can claim a deduction under Section 24(b) for the interest paid on the loan.

A trader is liable to deduct TCS (Tax Collected at Source) on the sale of goods under Section 206C(1H) of the Income Tax Act, subject to the following conditions:

1️⃣ Applicability of TCS on Sale of Goods (Sec 206C(1H))

✔️ The seller must have a turnover exceeding ₹10 crore in the previous financial year.
✔️ TCS applies when the buyer purchases goods worth more than ₹50 lakh in a financial year.
✔️ TCS is applicable only on the amount exceeding ₹50 lakh.

2️⃣ TCS Rate on Sale of Goods

✔️ 0.1% of the amount exceeding ₹50 lakh (If PAN is available).
✔️ 1% if the buyer does not provide a PAN or Aadhaar.

3️⃣ When to Collect & Deposit TCS?

✔️ TCS should be collected at the time of receipt of payment from the buyer.
✔️ It must be deposited with the government by the 7th of the next month.

4️⃣ Exemptions from TCS on Sale of Goods

❌ TCS is NOT applicable if:

• The buyer is the government, embassy, RBI, or public sector company.
• The sale is already subject to TDS under any other provision.

✅ Example:
If a trader has a turnover of ₹12 crore in the last financial year and sells goods worth ₹60 lakh to a customer, TCS will be applicable on ₹10 lakh (₹60 lakh – ₹50 lakh).

TCS Calculation:
👉 TCS @0.1% on ₹10 lakh = ₹1,000 (if PAN is available).

Yes, losses can also be clubbed under the Income Tax Act, 1961, in cases where income is required to be clubbed as per Section 64. This typically happens in situations where income from one person (such as a spouse, minor child, or specified relative) is added to another person’s income.

When Can Losses Be Clubbed?

1️⃣ Income from Transferred Assets (Section 64)

• If an individual transfers an asset (without adequate consideration) to their spouse or minor child, the income from that asset is clubbed with the individual’s income.
• If the asset generates a loss, that loss must also be clubbed in the same manner.

2️⃣ Minor Child’s Income (Section 64(1A))

• If a minor child earns income, it is generally clubbed with the parent’s income.
• If the child’s income results in a loss, that loss can also be clubbed with the parent’s income and set off accordingly.
• Exception: If the child has a disability under Section 80U, their income/loss is not clubbed.

3️⃣ Partnership Firm or HUF Cases

• If an individual transfers an asset to a partnership firm or HUF where they have a substantial interest, the profit/loss from that asset is clubbed with their income.

Example Scenario

🔹 A father gifts ₹5 lakh to his minor child, who invests it in stocks and incurs a loss of ₹50,000. Since the child’s income is clubbed with the parent’s income, the loss is also clubbed, and the parent can use it for set-off.

🔹 A husband transfers a property to his wife without consideration. If the wife incurs a rental loss, the husband must club that loss with his income.