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Rental Income of Joint Property

adarsha h l (14 Points)

24 April 2025

Husband and wife Jointly-owned flat rented out , both are equally contributed towards property. can she claim full rental income in itr?

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Rama chary Rachakonda (Master in Accounts & high court Advocate) (8722 Points)
Replied 24 April 2025

Rental Income Taxation for Jointly Owned Property -

*Joint Ownership*: When a property is jointly owned by a husband and wife, the rental income is taxable in the hands of both owners in proportion to their share in the property. -

*Equal Contribution*: If both spouses have contributed equally towards the property, it's assumed they have equal ownership and share of rental income. Claiming Rental Income in ITR -

*Proportionate Share*: Each spouse can claim their proportionate share of rental income in their individual income tax return (ITR). In this case, since both spouses have equal ownership, each can claim 50% of the rental income. -

*Not Full Rental Income*: The wife cannot claim the full rental income in her ITR. She can only claim her share of the rental income, which is 50% in this case. Tax Implications -

*Taxation*: Rental income is taxable under the head "Income from House Property." Each spouse will be taxed on their share of rental income. -

*Deductions*: Both spouses can claim deductions on their share of rental income, such as standard deduction and interest on home loan (if applicable). Recommendations -

*File ITR Accordingly*: Ensure both spouses file their ITRs accurately, reflecting their share of rental income and claiming deductions accordingly. -

*Maintain Records*: Keep records of rental income, ownership details, and contributions towards the property to support tax filings.

adarsha h l (14 Points)
Replied 25 April 2025

Thank you very much sir.

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