Income from House Property and home loan benefits

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This discussion clarifies tax rules for jointly owned property with a home loan. If a husband pays the loan interest and the property is let out, the rental income cannot be declared solely by the wife. Due to clubbing provisions, if the wife has no other income, the entire rental income will be taxed in the husband's hands. Therefore, claiming loan benefits and declaring property income separately by joint owners in this manner is not permissible under income tax law.

Shraddha

Shraddha (Querist)
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21 November 2021 Dear Sir, If any case, husband (doing job in private co) and wife (house wife) is joint owner of one house property and home loan has taken on it and husband is paying loan with interest. The house is let out to third person and he is giving monthly rent and this rent is deposited in husband wife's joint account. Now, at the year end husband is claiming loan interest as loss from hp and 80c deduction with the salary income and wife is showing whole rent income in her income tax computaion. husband name is first in both the agreement. Is it possible in Income Tax that one person is claiming Home Loan benefit and other person is showing House property income? please guide.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 November 2021 It's not possible to show house property income in wife's hands and claim home loan interest in husband's name.

CA.Pujah

CA.Pujah (Expert)
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20 December 2021 Also, if wife has no other income, clubbing provisions are attracted and whole income including rent will be taxable in the husbands hands

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