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SIDDHARTH KOTHARI (N.A)     11 September 2012

Income from house property


1)If the house property is purchased in joint name(Mr.X and Mrs X) and the loan is taken on it in joint name of Mr.X and Mrs.X.The House is self occupied.My question is that whether the benefit of Section 24 and Section 80C can be claimed by both or only by first name holders?

2) In the above case if the house is given on rent then in whose total income the rent income to be considered? whether in Mr.X  or  Mrs.X or in both or as in the name given in the Rent Agreement.?

3) Can we do the Ren agreement in only in one name eventhough we have puchased the house property in joint name?


Thanks in Advance.

Please revert me back at the earliest.................

 2 Replies

Giridhar S Karandikar

Giridhar S Karandikar (Team Lead)     11 September 2012

1]. the income from House Property is assesable in the bands of the person who is the owner of the property.  So in your case as you both are the owners theincome would be assessable in the hands of both of you and deducions can be availed by both.  However the ratiio in whihc the income would be shared is decided mutually between the parties who are the owners considering the taxation.

2]. If the house is given on rent then the income would be assesable in the hands of both.  However in this situation the owner who is in the higher tax bracket may take a higher share if the outgo towards interst is substantial and results in a loss.  However after deducting interest there is cinome arising then the person in the higher tax bracket may take a lower sahre & the person in the lower tax bracket may take a higher share.

3]. If the income would be shared by both of you then it is advisable to make teh Rent agmt in both of yoru names.

CA Manish

CA Manish (Job)     11 September 2012

Text of Section 26

"Where property consisting of building or buildings and lands appurtenant thereto is owned by two or more persons and their respective shares are definite and ascertainable, such persons shall not in respect of such property be assessed as an association of persons but the share of each such person in the income from the property as computed in accordance with sections 22 to 25 shall be included in his total income."

Therefore if the Share is not defined and registered the co - owners would be taxbale as an Association of Person.




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