Request you all to please help me out on this case.
A residential house (situated in City A) is co-owned by father and son. Father is residing in City B and son is residing in City A.
Till last year, this house was let out and the actual rent received (say Rs 10,000) was divided between father & son (i.e. Rs 5,000 each) and was declared respectively in their Income Tax return.
Now, from current year this house is lying vacant. Son is for some reason residing in other house in City A for which he is paying rent and claiming the same under HRA deduction.
Request you all to please help with the tax treatment of the above case (assume that entire interest benefit of loan is availed by Son as the entire loan EMI is paid by him)
The tax treatment that I presume is as under:
For the current year, if the co-owned house is treated as 'DLOP - Deemed to be let out property', the son will be showing Rs 5,000 (i.e. his share of deemed rent) as deemed rent in his Income Tax Return..... But, will father be exempted from deemed rent as he is residing in City B (in a property not owned by him) where he is running his business and the property is situated in City A