Income tax form itr 2 - co-ownership of property

ITR 5421 views 5 replies

Anonymous

Manager

24 Points Joined July 2012

I live in a flat which is in joint name of my wife and myself. My wife is a housewife and has no income. I repay the loan EMI entirely from my income.

Should I fill my wife as the co-owner of property in ITR2 form (House Property)? If yes, then should her share be 50%? Will it impact the calculation of income tax deduction that I am going to claim (Rs. 1.5 lacs).

Please advise.

Replies (5)

Rahul

kuch nahi

25 Points Joined June 2008

I had the same question, didnt get any replies from a post few weeks ago. I asked 2 CAs - they said property share in ITR-2 should be from tax/financial ownership perspective. Hence if you are clubbing everything anyway, then from a tax perspective its 100% in your name. Doesnt affect anything else. I'm following this advice as I file my return. Hoping advice from CA is correct.

Gopal Mirchandani

Retired

110 Points Joined July 2009

My two bits..

to my mind its about beneficial ownership. Who really owns the property. If the amount is fully paid by the husband (incl loan- which is taken by the husband) then then its not beneficially co-owned by the wife. So I would put 100%. In my view the wife's name in the property is only for convenience purposes.

I tried the excel utility.. it does not seem to make any adujustments to the house property income (based on % of co-ownership). So if the property is actually co-owned the the HP Income has to be adjusted (as per % share) and entered into the efiling software.

Any other views?

Pankaj Gupta

CA final & M.Com Student

3358 Points Joined June 2011

Although the house is in the joint names of the two persons.but from tax point of view the actual owner will be the person who had purchased such house property or paid the loaned amount. Therefore you cannot show your wife as co-owner of the house property. Therefore you should not claim deduction of on behalf of your wife.

Parihar Gopal

Corporate Taxation

392 Points Joined November 2009

Yes, you can claim income tax exemption if you are a co applicant in a housing loan as long as you are also the owner or co owner of the property in question. If you are only person repaying the loan, you can claim the entire tax benefit for yourself (provided you are an owner or co-owner). You should enter into a simple agreement with the other borrowers stating that you will be repaying the entire loan. If you are paying part of the EMI, you will get tax benefits in the proportion to your share in the loan.

vivekkumat

accounts officer

21 Points Joined May 2009

what if the plot of land is in the name of wife only ? and the loan to construct house is taken jointly due to wife being only a housewife ?? vvkk @ in.com 9414029345