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House property

Paras (Job) (90 Points)

06 June 2013

Father n son together invested in undividend H.Property(50% each).After few years,only son incurred repairing cost.will this be allowed as cost of improvement to son only or to both(1/2 of the cost)?

whether Municipal tax paid by son only is allowed to him or to both?

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PRAVEEN KUMAR (MBA (Finance) B.Com.(P)) (3443 Points)
Replied 06 June 2013

I think they both can avail the deduction

if property is co-owned it comes under Section 26 of Income-Tax Act, 1961 deals with Income from house property - Co-owners

Where property consisting of buildings or buildings and lands appurtenant thereto is owned by two or more persons and their respective shares are definite and ascertainable, such persons shall not in respect of such property be assessed as an association of persons, but the share of each such person in the income from the property as computed in accordance with sections 22 to 25 shall be included in his total income.

For the purposes of this section, in applying the provisions of sub-section (2) of section 23 for computing the share of each such person as is referred to in this section, such share shall be computed, as if each such person is individually entitled to the relief provided in that sub-section.