Hi,
If Mr.x and Mrs.x are co-owners of a house and the share of % of ownership of each of them is not mentioned anywhere in the agreement/ legal documents. [Mr.x paid the entire cost of acquiring the house from his personal savings initially] Mrs. X is house wife and has no other income to report.
The property is rented out and they receive monthly rent of Rs.10000 (say). pay Municipal tax of rs.200 for a year.
Is the following workout right?
Mr. X:
Rental income: 5000 x 12
Less municipal tax: 100
Less 30 %
Property Jointly owned-yes.
ownership %=50%
The same workout for Mrs. x too...
Can i even mention 80:20 ratio for Mr.x and Mrs.x? is there any legal steps required to establish the % of share in property to divide the rental income accordingly? If it is not mentioned there, can that be assumes as 50% by default? Can the wife ,who literally earns no other income, claim a big share of the rental income(as in case of 80:20 ratiodeclaration in ITR)?
CAclubindia
