Income from the property jointly held with spouse

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2013 I am a salaried person and taken a home loan. The property is in the joint name with my spouse. The housing loan has been taken for buying and the EMI against the loan is being paid from my salary account. However the income from the property (Rental Income) is being added to the taxable income of my spouse.
I have sought Income Tax relief for the Interest & Principal against the loan, having been paid from my account. However my employer insists that the income from the property should be added to my taxable income in order to avail the tax benefits. Kindly advise.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

11 July 2013 Your employer is correct, there should Income and expenses matching concept. Your spouse is claiming Income and you are claiming deductions against some other income is not allowed as per Income tax act. you can show proportionate income and deductions and also your spouse can claim proportionate deductions as joint owner

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