House rent income (2nd property)
This query is : Resolved
22 November 2016
Dear Sir
Suppose, I have 2 properties; for first one I am the sole owner and is currently self occupied and I am availing tax benefits on the same (of Housing Loan).
For second one my wife is the co-owner with me and it is not on Loan and has been let-out on Rent. The payment made to builder is from joint a/c of mine and my wife’s bank a/c and some amounts in cash also. The maximum amount is the savings of my wife only.
My questions are:
1) Whether rent received on second property will be considered as my income (under income from house property) or my wife can show this income in her IT returns as income from house property?
2) If answer for question-1 is NO, then what to do if my wife has shown this income in her IT Returns in previous year? And also what to do of my IT returns in which this rent component has not been incorporated in previous year?
3) Is there any way to show/consider this second property only of my wife as sole-owner as she has allowed me to be as co-owner in the property only for the purpose to avoid property transfer proceedings etc after mine or her death.
4) Please clarify about the issue in details with all aspects to avoid any violation of rules or regulations under IT Acts.
Suppose, I have 2 properties; for first one I am the sole owner and is currently self occupied and I am availing tax benefits on the same (of Housing Loan).
For second one my wife is the co-owner with me and it is not on Loan and has been let-out on Rent. The payment made to builder is from joint a/c of mine and my wife’s bank a/c and some amounts in cash also. The maximum amount is the savings of my wife only.
My questions are:
1) Whether rent received on second property will be considered as my income (under income from house property) or my wife can show this income in her IT returns as income from house property?
2) If answer for question-1 is NO, then what to do if my wife has shown this income in her IT Returns in previous year? And also what to do of my IT returns in which this rent component has not been incorporated in previous year?
3) Is there any way to show/consider this second property only of my wife as sole-owner as she has allowed me to be as co-owner in the property only for the purpose to avoid property transfer proceedings etc after mine or her death.
4) Please clarify about the issue in details with all aspects to avoid any violation of rules or regulations under IT Acts.
22 November 2016
Yes u both are liable to tax under House property income. The share of income will b equally taxed in ur and ur wife's IT returns. To make ur wife sole owner(for taxability), u must withdraw ur name from the property. If u r not withdrawing only due to legal matters after death of any co-owner, then u must register urself as legal heir in case of any death.
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22 November 2016
Dear Sandeep Sir
I would request you to give your expert opinion on question no.2 Please.....
I would request you to give your expert opinion on question no.2 Please.....
22 November 2016
U may revise it if u haven't shown the income in ur IT return. Ur wife must also revise and treat herself as the co owner of the property and taxability accordingly.
12 December 2016
Dear Sandeep Sir,
If Renal Income is around 50000/- per annum.... then 25000/- to show in wife's income and remaining amount to show in my returns? is it correct ?
And what about std. deduction of 30% of rental income ?? please clarify sir.....
If Renal Income is around 50000/- per annum.... then 25000/- to show in wife's income and remaining amount to show in my returns? is it correct ?
And what about std. deduction of 30% of rental income ?? please clarify sir.....
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