It liability for joint second property

I purchased a flat jointly (50 % each) with my wife, with I as the first owner, in December 2014. My wife is not working.

  1. As the house is lying vacant am I liable to pay income tax on Notional rent for 3 months (Jan to March 2015) ?
  2. In the IT return form, under rental income,  in case of joint ownership, it asks for % of ownership. If I mention 50% in my return, then rental taxable income is getting reduced by 50%. However,  I presume that I am liable for IT on total rental income (after 30% deduction etc).

How do I handle it please ?

 

Replies (4)

Notional REnt is required to be shown only if you own more than one residential property and you treat one of them as SOP and the other one is let-out.  From your question it is not clear that u r owning more than 1 property.

If your wife is not earning anything then it would be better to show 50% taxable income into her hands so that your burden of taxation would come down.

Appreciate your response.

Additional information is:

I own an another house also. The present house is second one.

While buying the second house jointly with wife, I had paid from my sources. There was no contribution from wife as she is not working. Therefore am I not liable to pay IT on  100 % rental income, instead of 50% ? If it is so, how do I handle it in the return form (wherein showing 50% ownership, reduces tax liability by 50%) ? [Wife does not  not file returns]

Thanks.

The second house shud be shown as Deemed to be let out property. Yes you can show 50% taxable income in your wife's hand to reduce your tax liability.  You can take the whole deduction of interest paid and your wife can claim only 50% of 30% standard deduction.

 

IF ME AND MY WIFE OWN TWO HOUSES.BOTH HOUSES ON JOINT NAMES.WE BOTH ARE WORKING.WILL THERE ANY NOTIONAL RENT BE APPLICABLE IN THIS CASE.CAN WE CLAIN ONE HOUSE EACH FOR SELF LIVING.

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