Please help on this case dost
Case: Initialy wife was allotted a house property for which both husband and wife together took housing loan and repayments were from their joint bank account .Both are the joint owners as per Sales deed too.
From several years wife is taking the rental income in her income tax return together with salary and interest income (she come in 20% , 30% tax bracket)
As per laws since both are the equal owners of the house property and cost funded is also from both , the rental income should be apportioned between the two..But it is not done from several years as initially husband was in Dubai nd he has started filing returns from prior 4 years only.Husband's current year income tax return is also filled and he comes under above 50 lacs bracket
Now what should be the best course of action in the given scenario which will not attract or are minimal chances of any assessment or penalty
1 )should the husband's return be Revised to include 50% share of the rental imcome
2) dont revise current income tax return and do the same as was happening from past years to include 100% rental income in wife's current ITR and correct the situation from next year onwards as husband's current year return is already filled.
CAclubindia
