Question

What do you mean by deemed assets in tax?

Answer 1

Hi, If any asset is transfer without adequate consideration to spouse then the property will be clubbed in the hand of transfer-or. but spouse earn any income say rental income from such transferred property and purchase any other asset from the rental income. then whether second asset purchase from the rental income of deemed asset will also be clubbed in the hand of transfer-or or transferee himself or herself will pay tax on such second asset.

Answer 2

Deemed Asset is an asset, other than the funds, in which a portion of a Participants account is deemed to be invested in.

These are assets, that do not legally belong to the assessee. However, are clubbed as his assets while computing his net wealth.

Examples: Assets of spouse/children, assets transferred to a person or a company.