I have let out a flat. The flat is co-owned by me and my wife. I also have Home Loan and Top Up Home Loan on this property. Till March 2023, I have paid all the EMIs from my bank account since my wife was not working. She has recently started working. However, the EMIs are deducted from my account (That's the arrangement between us). For the let out property, Rent is credited to a joint account but the rental agreement is done in my wife's name.
Here are my question. 1. Can we divide rental income equally or the rental income must be considered into my income since I have paid all EMIs till now. 2. Home Loan and Top Up Home Loan interest deductions would be applicable to both of us?
27 December 2023
Thank you very much for reply. I have one more question. As I mentioned, I have taken Top up loan and its fund was used for buying another property. In that case, Am I eligible for tax benefits under Article 24 with respect to Interest amount of Top up loan? I understand that I cannot claim tax benefits had I used the top up loan amount for recreational purpose like vacation etc.
CAclubindia
