House property related

924 views 2 replies

Deepak K

Mutual Fund Distributor INSURANCE ADVISO

47 Points Joined May 2012

I am a Professional Insurance Advisor. I have my own house which I have got from my father.

Now my Mother is buying a Flat for herself from her own fund, She is an Individual Tax-Payer since 1968.

But She is willing to Register it in joint names i.e. alongwith my name. I am already having my own residence.

Whether I will have any Tax liability under Income from House Property due to this?

I also want to add that , My Mother is buying this flat for her own indidual residential use. She is

not going to rent out the flat.

Replies (2)

praveen

Chartered Accountant

6971 Points Joined September 2007

It depends on what you will do with it,

For Eg. if you are letting it out to someone to earn rent then definitely your share will be taxed .

or If you decide to keep it for yourself without renting it then you have tax implications again. But there are a number of case laws which needs to be examined to decide about taxability. most of them depend upon what you do with the property.

Ashish M

Chartered Accountant

2731 Points Joined January 2008

Hi,

Two things.

1. Whether any tax liability on registration of property jointly on your name - No. There is no issue if you hold a house property jointly with your mother even if it is not funded by you.

2. After it is registered, if any income is generated from that house property, say it is let out - Then the rent income will be taxable in ur hands in the ratio of the share held by you in that property.

But, even if it is not rented out, since, you already holds a house property, your share in this property may be taxed on the basis of expected rent. In that case, you can show either of your property as Self occupied and pay tax on the second one.

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- Ashish

(8802999731)