Loss of income - let out property

You both are Co- Owners. Income from HP is taxable on the basis of ownership. Half of the rent is taxable to each of you, similarly, interest also needs to be shared proportionately.

Originally posted by : CA Mukesh Jain S
	You both are Co- Owners. Income from HP is taxable on the basis of ownership. Half of the rent is taxable to each of you, similarly, interest also needs to be shared proportionately.

yes agreed 

Yes agreed

thanks you, i understand. here in my case wife have not made any  contribution for the purchase of property. also her share of property not mentioned in sales doc.  i pay emi also. she doesnt have taxable income. still i can claim only half of the housing loan interest as deduction? is there a way she can make me full owner of property. we are at a loss due to this complication. please suggest.

thanks & regards

Kumar

If her name is not mentioned in sales deed then u can claim the whole interest expenses.

Dear friend,

Let me explain. In income tax there is one simple rule the person who has invested in the property is the owner even if the whole of the property is in the name of wife. You will be treated as deemed owner u/s 27.

So forget about co-owner u/s 26.

Whole of the rent wil be taxable in your hands. There is no way u can get away from this.

As far interest is concerned u should claim its full deduction. If u have not claimed in earlier PY then claim it by filing revised return u/s 139(5).

If time limit of RR has expired go for S 154 rectification of mistake.

I hope it is ok.

since whole of emi is form your account and your wife has no taxable income you are deemed woner and can claim whole of interest.....

Income from House Property u/s 22 and 23 is calculated on property to property basis.

While deductions u/s 24 are allowed to an assessee and not to a property.

Hence each co-owner/joint owner can claim deductions u/s 24 separately.

thanks for replying to my query. am bit confused. can i claim the full housing loan interest deduction from my income. i am ok to add the full rental income as my income. pls suggest. regards

regards

Kumar

Mr Kumar, you and your wife both are co-owner of the property. According to the IT act, income derived from the property shall be devided accordingly your share in the property.. and interest payment will be devided equally ( if share is equaly )...

I feel Kaushal is right.

In this case if owner is salaried employee can he also claim deduction u/s 80c for principal repaid. Say for e.g rental income 15k pm , interest paid during the year 3,00,00 and principal repaid during the year 50k. Can owner say that loss on house property = 1,80,000-3,00,000 = -1,20,000 and for 50K repaid can he include that with his other investments and claim deduction u/s 80c.

Pls clarify.