Itax on house property owned by wife

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2018 Sirs, My wife who has no independent source of income and is a homemaker was allotted a plot of land in a Cooperative Hsg. Society. With her savings and help from me, her parents etc. a house has been constructed on the plot. No loan was availed.She is the owner as per the records and as per the advice of knowledgeable well-wishers, I have not taken this house into account in my ITRs which I have filed regularly. As my wife has no income, she has not filed any ITR till now though she has a PAN Card. Now she wishes to file an ITR for refund of about Rs 1800.00 deducted from her interest on Fixed Deposit as she had forgotten to submit Form 15G/H. Question is whether house held by her in her name is to be considered self-occupied though she is staying with me in a different house OR whether her self-owned house is to be shown as Let out Property. Her self-owned house has not actually been let-out but if required will have to be shown as deemed to have been let-out with reasonable rent. In any case her tax liability will be NIl.

ALKESH T MEHTA

ALKESH T MEHTA (Expert)
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09 August 2018 It is to be shown as deemed to be let-out,as husband & wife are by custom are staying under one roof.She can claim statutory allowance & deduction for house-tax by reducing from deemed rent.

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2018 Thanks Sir. But without wanting to hold you responsible in any manner I would like to know whether I have been correct in not including wife's house in my ITR. I have two houses in my name, one being treated as self-occupied (with wife) and second shown as deemed let out.