Mr. A & Mrs.A (house wife, without any source of income) registered as co-owners of a let-out porperty, which is purchased by the husband by taking 80% bank loan & balance from his own savings. Besides, the home loan also being taken on jointly, i.e., each co-owner being the co-applicant too. However, the entire EMI is being paid by the husband from his own savings account.
Since the property has not been gifted or tansferred to wife but registered in her name along with the husband's name, so sec-27 "deemed owner" doesn't apllicable here.
1. Should the rental income be taxable in both the hands of husband & wife as per sec-22 & 26, even though wife has not done any monetary contribution?
2. Can the husband claim full EMI paid as deduction u/s-80C (principal) & u/s-24(b) (interest) as he is the co-owner as well as the co-borower, whether 50% rental income taxable in each of the spouse's hand or 100% renal income taxable in husband's hands?
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