Income from house

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Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2016 A is sole owner of a house in Delhi, where he resides and has declared it as self occupied. He also has another house, in Gurgaon, jointly owned with his wife, which was vacant for full year. He declares the house as deemed let out and half of ALV is treated as his income from house property.
The wife has no other property in her name and wants to declare her half share in the house as self occupied,(not deemed let out) even when she lives with her husband. Please advise if it is permissible.

CA SUNIL K GARG

CA SUNIL K GARG (Expert)

10 May 2016 No it is not admissible for wife to claim half share of house property as self occupied. As per Section 27 of Income Tax Act, 1961 husband will be deemed owner of property if he transfer it without consideration. Second thing as wife is residing with husband, she can't show two property as self occupied.

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Querist : Anonymous

Querist : Anonymous (Querist)

10 May 2016 Wife paid half of the cost from her own separate funds from her own income and hence 50:% owner in her own right. Hence section 27 does not apply. Husband did not transfer the house, but they jointly purchased the house, both contributing half of the cost each.. Will it make a difference?
As regards actual residence, law does allow owner of a house to select one property as self occupied, even while actually residing at different place. Kindly give your considered views in view of the fresh facts given herein. Only point is that husband treating his part of property as deemed let out and wife treating her 50% as self occupied.

Amol S Joglekar

Amol S Joglekar (Expert)

10 May 2016 Wife can very well claim it to be self occupied. Please try to make the distinction between "self occupied" and "self lived".
There can be situations that a person is having n properties which are self occupied. One out of that, at the choice of the person shall be regarded as self occupied and the rest as deemed let out.
Even the person has the choice to change the self occupied property on year on year basis if it so desires.

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