Rent from house property

as per section 26, if property is owned by two or more than two person and their share is definite and ascertainable than the share of each such person in the income from the property as computed in accordance with sections 22 to 25 shall be included in his total income.

the person who has taken loan can claim deduction from his share of income and not total income of house property

Agreed with Vijay

Only one made the investment and yet both are registered as joint owners? If, on paper, both are owners then rent income can be shared.

Were 61 and 62 attracted at the time of transfer of property?

agree with vijay

Originally posted by : Vijay Patil
	as per section 26, if property is owned by two or more than two person and their share is definite and ascertainable than the share of each such person in the income from the property as computed in accordance with sections 22 to 25 shall be included in his total income. the person who has taken loan can claim deduction from his share of income and not total income of house property

Agree with Vijay

 

Int on housing loan should be allowed jointly if such loan taken jointly...

If one of two joint owner taken such housing loan the int u/s 24b will be allowed to such joint owner only

Mayank,

Interest on housing loan shall be in the same proporation of joint ownership.

If 60:40, then interest on loan shall in this ratio only.If it is 75:25 then accordangly.

 

Int on housing loan should be allowed in which  ownership.

 

Example :- A and B two joint owner in ratio of 60 : 40, then it should be allowed in the ratio of 60 : 40 only u/s 24b on income tax act 1961.

Hi All, Thank you for your prompt response and advise. I also got the following response which is not showing in the trail: "I humbly disagree. As you said, the property was build by investment of 'one' of the owners. Why will the other spouse get the benefit of rent when he/she doesnt own the property? Section 60, regarding clubbing of income, applies here. "All income arising to any person by virtue of a transfer 68 whether revocable or not and whether effected before or after the commencement of this Act shall, where there i s no transfer of the assets from which the income arises, be chargeable to income-tax as the income of the transferor and shall be included in his total income."" I will try and explain my scenario- I along with my wife as a joint owner had booked an apartment for which we jointly took a housing loan. However, the EMIs are being paid by me only from my salary account. After few years we got the possession and the property was registered in the name of both the owners. Now, we are giving the apartment on rent and would like to know if the rent can be split equally between the two joint owners. As the EMI's are being paid my me, can I claim the interest deduction from my share of the rent i.e 50%. Also, we are liable to pay wealth tax and we should both pay 50% each on this apartment?? Thanks again and looking forward to clarity on the above ASAP. Regards Chetan

When both are joint owner & the loan is also in the names of both husband & wife, rental income shall also be the income for both, though the investment is done by one is not tenable. As both are legal owner of the property, both are entitled to get the rental inocme. 

As for as interest in concerned, both are eligible for deduction.

Alternatively if the person paying the EMI is taking interest benefit alone, then the spouse cannot take the interest benefit intheir individual return

Hi Madhusudan,

Thanks! As I am paying the EMI and hence the interest, I will be deducting the 100% interest from my share of rent i.e 50% of the total rent and I hope it is in order???

Regards

Chetan

Hi Madhusudan,

Appreciate if you can answer my last question to help close this issue.

Regards

Chetan

Your spose cannot take the benefit in that case!!

Hi All,

 

How do you determine the % of ownership in the income from house property when both wife and husband are owners?

How do you determine the % of interest if both are paying it together let's say a join account)

 

Regards,

Pavan