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Joint ownership of two homes

Tax queries 198 views 2 replies

Sam Note

2 Points Posted on 08 May 2017

Hello.

I co-own a house in one of bangalore's apartment complexes with my wife. I'd like to purchase a second home for my parents to stay in the same apartment complex, hence it's not meant to be fetching rental incomes.

I understand that the second home would have a deemed income on which I have to pay a tax given current tax rules. Will my owning only 50% of home 1 and, 50% of home 2 constitute them being treated favorably in the taxmans eyes as one house?

How should I structure - joint ownership, etc- so that there are minimal tax implications? Please assume that I do not have loans for either homes. I could take up a loan just for tax planning if required.

Thank you!

Replies (2)

sivaram

Asst Mgr-Taxation

6918 Points Posted on 08 May 2017

first house is self occupied second house is treated as deemed let out since you said you can avail loan for house 2 show notional income received from parents and deduct entire interest paid on the loan and this can be setoff against salary income and also it goes to reduce your total taxable income

harsha

Article

208 Points Posted on 09 May 2017

u have option to opt any one of the two houses as self occupied and remaining as let out. the one which is more valuable may be treated as self occupied, and other obviously offers less rental income. try this , if u seems favourable to u sam.