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!
CAclubindia
