Taxable income from all sources

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2012 Dear Expert,

I have formed a company Krypton & Co which is a pvt ltd com. wherein my parents are the director of the company and i am the salaried employee of the company. I draw monthly salary from the company for rendering my services.

Further i have a Self Occupied Property wherein i reside with my family and another property which i have Let Out to Krypton & Co wherein the company pays rent to me and my mom as the Let out Property (LOP) is in the joint name of myself and my mom (with no proportion specified).

The above let out property is purchased by me through a bank loan wherein i pay interest and principal amount. There is no contribution from my mom towards the purchase of LOP.

I have the following queries:
1. Can the rent received from the company be distributed equally between me and my mom as income from house property even though my mom has no contribution towards the purchase of house property OR would it be considered totally as my income since only i have contributed towards the purchase of the house property?

2. Secondly, I would want to claim the interest paid on the let out property and adjust the loss from house property against the salary income. So can the loss form house property be adjusted against salary income and TDS be deducted on the balance taxable amount only? What are the documents that i need to submit to the company and to the AO at the time of submitting my return?

kindly advise?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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09 July 2012 You have taken a loan for the purpose of purchasing the let out property, of which you and your mother are co-owners. Your mother had paid nothing hence it is not reasonable to distribute equally the amount, until she reimburses you the amount in respect of her share in the property.
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You can claim entire interest on capital borrowed , when you show rental income in full as receivable from the Company.
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U/s 192(2B) it has been mentioned that while deducting TDS, the employer can consider the loss under the head IFHP, and can deduct TDS accordingly.
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