House property income

Tax planning 346 views 2 replies

Milind Kulkarni

CA Practice

84 Points Joined September 2012

A residential flat is in the joint names of husband and wife. First name is that of the husband. While letting out the flat on rent, they want to make agreement in the name of wife, since her income is below taxable limit and husband has a taxable income (wife has a small business but income is not enough to be taxable). Is this permissible or they have to choose one of the following?

1. Make agreement in the name of the busband since his name appears first or;

2. Make a joint agreement, thereby apportion rent received equally between husband and wife.

Would request an early response but with justifiable reasons. Thanks in advance.

Replies (2)

shabnam yasmin

article assisstant

51 Points Joined March 2014

Since the flat is in the name of both husband and wife so the agreement can be made with any one of the owners..it is not a necessity that the agreement should be with the husband only as they are equal owners of the flat.

they can also have a joint agreemaent if they want as there is no restriction on the same.

Income Tax Wala: (Fin. Expert)

Chartered Accountants

2015 Points Joined August 2010

Dear Milind

as you told that flat is in joint name, in that case agreement can be made with any name out of joint holders.

next is income must be apportion equally in name of both the joint holders. if their shares are decided in registration papers than rent will be taxable in that ratio other wise equally taxable in hands of both the joint holders.