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Income from house property.

Rajesh Goyal (57 Points)

16 February 2019  
For current FY i.e. FY 2018-19, My housing status is:
I am living in a house in Joint name in Delhi in which I am the co-buyer and my wife is buyer (First owner). I have purchased a house in another city in current FY in which I am buyer and my Daughter is co-buyer with 50% share with Joint bank loan of 50% share. My daughter is co-applicant in bank loan and second owner in property sale deed. I am retired government servant, my wife is working, my daughter is married and working in Delhi her in-laws are staying in the new house.
Please explain how it be accounted for income and losses for me and my daughter.

 5 Replies

Giridhar S Karandikar (Team Lead) (7370 Points)
Replied 17 February 2019

since you own more than one property. then you can opt anyone property which has a low municipal valuation and calculate deemed rent on it and offer the same for tax
however you gave not mentioned whether the first house where you and wife are Co owners us taken on loan.
for the deemed rent offered you can claim deduction towards municipal taxes paid and on the balance you can claim 30% STD deduction and interest up to 2lacs paid on the home loan
you can also get deduction under 80C towards principal paid on home loan

Rajesh Goyal (57 Points)
Replied 17 February 2019

No bank loan on first house.

Giridhar S Karandikar (Team Lead) (7370 Points)
Replied 17 February 2019

so you need to offer second house for taxation as you can claim home loan benefits

Bharat chandan (student) (158 Points)
Replied 17 February 2019

Having joint ownership of 2 house will make you owner of 2 homes (on partial basis). Hence you will need to offer 1 home as your self occupied and another as Deemed to be let out. As suggested by Gridhar, you should offer house as DLOP on which you have taken loan. (however it will make no difference if interest per annum is below Rs. 2 Lakh)

Also i would suggest if you can transfer share of old home to your wife to make her 100% owner. Through this you will be a co owner of only 1 home which you can treat as self occupied.

Also please refer to deductions allowed under Section 80C against payment of loan (if eligible)

Rajesh Goyal (57 Points)
Replied 17 February 2019

To my understanding this problem of co-ownership of two houses is only for current FY. As per budget 2019, this will not remain an issue. Any comments?

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