House Property Income of Joint Owners

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This discussion addresses the tax implications of jointly owned properties where one spouse funded the purchase and loan repayment, while the other is the legal owner. The query specifically asks how rental income and savings interest from let-out properties should be treated for tax purposes. The consensus is that the income should be included in the husband's tax computation due to clubbing provisions, as he provided the funding, but interest earned on savings accounts where rent is deposited is not taxable for the husband.

Dibyendu Majumder

Dibyendu Majumder (Querist)

05 January 2022 Sir, My clients woned 3 house property. 1 is self occupaid & another 2 is let out, They are legally owners as per sale deed & loan agreement, but 3 house property totally funded & loan repaid by husband. The rent arise from 2 letout property is deposited to wife bank account, What is the tax treatment of profit/ loss arise from 2 letout house property & interest of SB , arise from house property income? . Is it included in Husband or wife tax computation? Please clarify.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

05 January 2022 It's to be included in husband's income as he only funded for the property.
Clubbing provisions applicable.

Dibyendu Majumder

Dibyendu Majumder (Querist)

06 January 2022 Is interest from Savings account on the name of his wife, where the rent is deposited will also be include in other income of his husband?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

06 January 2022 Not required to add such interest income.

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