Regarding rental income of jointly hold house

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Rajendra Joshi (Querist)

06 March 2017 Hello,

I and my wife own a 2nd home (apart from our current residence) where my wife's name is first name and mine is second name.
My wife and I both were co-borrower in home loan though I paid full EMIs from my bank account.
And we paid EMIs before possession since we booked it during construction. We got possession in Aug 2014.
Now, as per the rule I know that, the EMIs paid before the possession can be claimed for Tax rebate in 5 equal parts in 5 years after possession.

I have 2 questions here.
1) Can I alone claim the 100% benefit Tax rebate for the EMIs paid before possession for 5 years after possession ?
Or we both have to claim it 50-50% in our individual tax filing ? Or is it as per our percentage share in the property ?

2) Relating to above question, one more sub question is how to know the %share of me and my wife in the property.
Although we own it jointly with my wife's name as first name, On the agreement or property documents
I dont see the percentage share clearly mentioned any where.

More Info: We have given this property on rent to a tenant with a proper registered rent agreement where me and my wife both are party.
and we will be considering this rental income also while claiming Tax benefit of above mentioned Pre-possession EMI paid.

Kindly request you to reply.

Warm Regards,

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

07 March 2017 As you are a co-owner as well as co-borrower you can calim full EMI benefits by entering into an agreement with your wife that you shall pay the whole EMI. even if percentage share is not clearly mentioned in property documents or loan documents it has to be taken 50% each. rental income will have to be shown 50% each.

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