Joint house ownership - emi paid by me but rent on wife a/c

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Tarun S (Querist)
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30 July 2012 Hello - Need urgent help on how to file income tax :

- I jointly own an apartment with my wife. No exact share mentioned in deed but we have in past claimed 50-50 tax benefits (she is loan co-applicant too) when house was SELF-OCCUPIED. Both of us are working (salaried).

- Now house is rented. All EMI still goes from my account BUT rental agreement is in wife's name and her account gets rental income and TDS is also against her PAN #.

In this scenario, how do we file the returns ? Can we still do 50-50% split across income/deductions ? OR should one of us show others income in ITR2 schedule SPI ?

ANY HELP GREATLY APPRECIATED. THANKS IN ADVANCE.

Regards
Tarun

Amol S Joglekar

Amol S Joglekar (Expert)
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30 July 2012 you may argue that only 50% share of wife is rented and your share is self occupied, if the evidence to that effect is on record.

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Tarun S

Tarun S (Querist)
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30 July 2012 Thanks Amol - good suggestion though I'm still not sure what sort of evidence can I use. The rental agreement is for the full unit.

What potential issues could be there if we use 50-50 logic both for income and deductions. Logically we're not hiding or over stating any numbers.

Thank you again.

Regards
Tarun

Amol S Joglekar

Amol S Joglekar (Expert)
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02 August 2012 That is the planning mistake done by you. Now rectify it. Let the rent agreement consider the 50% area.

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