§ 25
Chapter IV — Computation Of Total Income
Interpretation
Income-tax Act, 2025
The term 'owner' has a broader meaning for certain tax purposes. It includes individuals who transfer property to their spouse or minor child without adequate consideration. Additionally, it encompasses holders of impartible estates, members of co-operative societies or companies who are allotted buildings, and persons who acquire rights in buildings through various means. Some key scenarios include:
- transferring property to a spouse or minor child
- holding an impartible estate
- acquiring rights in a building through a lease or sale
📜 Official text of the section +
25. For the purposes of sections 20 to 24, the “owner” in relation to a property
or any part thereof shall include—
( a) an individual who transfers without adequate consideration, any property
to the spouse (except under an agreement to live apart), or to a minor
child (other than a married daughter);
( b) the holder of an impartible estate, and he shall be deemed to be an
individual owner in respect of all the properties comprised in the estate;
( c) 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;
( d) 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 (4 of 1882);
( e) 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 its part—
( i) by virtue of transfer of such property by way of sale or exchange or
original or extendible lease for a term of not less than twelve years;
or
( ii) accruing or arising from any transaction (whether by way of
becoming a member of, or acquiring shares in, a co-operative
society, company or other association of persons or by way of any
agreement or any arrangement of whatever nature), not being a
transaction by way of sale, exchange or lease which has the effect
of enabling the enjoyment of such property.
D.—Profits and gains of business or profession
Income under head “Profits and gains of business or profession”.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.