I have one self occupied property in which I reside and one jointly held property with my brother. My question is, do I have to declare notional rent on that joint property? Or can the joint property be declared as self occupied in the ITR of my brother? If he declares it as SoP, do I still have to declare notional rent being a joint owner and having more than one house property?
Please let me know the solution to this.
IMHO both can seperately show individual property as Self occupied to save tax.
| Originally posted by : Uttam | ||
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IMHO both can seperately show individual property as Self occupied to save tax. |  |
But will it be allowed? Technically speaking I would own half of the property
Let us say you are staying in House H1 and your brother is staying in H2 [joint property] with municipal taxes MT1 and MT2 resp. I presume there is no rent and interest on borrowed capital is zero.
1] In your return if you take H1 and 50% of H2 then income from house property will be
-( 0.3 x MT1 + 0.15 x MT2) in ur case and in ur brothers case -( 0.15 x MT2)
2) if you take H1 only and H2 to be taken by brother then income from House property will be
- 0.3 x MT1 for ur case and ur brothers -0.3 x MT2.
Please see that annual letable/rent receivable and the amount of rent which cannot be reliazed are same. so that they are set off against each other.
I hope I am correct.
Shiroor
Structural Consultant for design of Bridges
CAclubindia
