Hi all,
My husband has one residential house in which we are residing now. Now he is planning to buy one more house with his brother in which his brother will be residing so it will not generate any rental income. Will my husband be lliable for deemed rental income for this second house?
Please guide as i am very confused about this
Hi Shalini,
As per Income Tax provision, where assessee own more than one house, one house shall be deemed let-out whichever is more beneficial to the assessee.
Also as per the fact provided by you, the house will be co-owned by your husband with his brother. Hence, if the sharing ratio is known, as per Sec. 26, only that part of income shall be assessable which is related to your husband.
Thus, you can opt for the beneficial one.
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