Rental income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2015 Dear Sir,

We have purchased an apartment in Joint name (myself and my wife). I am paying Home Loan. Recently we have moved to Rented apartment and i requested my company to provide me HRA benefit. We have given our apartment also on rent and my wife is receiving the rental income. And now she is paying rest of EMI out of rental income she earned. Is it OK to show rental income only towards her income and not to be added my income. Please advise.

Many Thanks.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 July 2015 If you also invested your money in the house then showing entire rent as her income is not accepted by income tax law.

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2015 Then how it should be divided in present our case ! We earned 32,000 towards rent. And provided my spouse PAN number to our tenant and she receives rent into her account. Please advice.

Many Thanks again.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 July 2015 If you invested the entire money then entire rent is included in your income. Equal investment divide it equally.

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2015 Our investment is not completed since we are still paying EMI to the bank. Home loan a/c also in the joint name as our Property and its truly difficult to know that exact portion of investment of each of us.

Thank you.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 July 2015 Take so far how much both of you invested.

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2015 It is around 66 Lakh(both of us)until today and still we have a loan of about 7 Lakh. And she works from home and as and when possible she pays EMI. But she is now receiving rental income we are paying EMI out of what she receives as EMI (of 32K).

Thank you.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 July 2015 It seems you only invested in the house include the rent in your income. EMI payment out of rental receipts by your wife can't be considered her investment.

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