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Tax planning of house property

SHUVRO ( (WANT TO LEARN) ) (175 Points)

14 September 2011

please guide to the most beneficial tax planning after taking the under mentioned facts and section (26) into consideration.

1. HP is in joint name of husband and wife (50% - 50%)

2. husband has taken loan for construction and repaying it.

3. husband has salary income and files ITR.

4. wife has tution income (but not taxable).

5. HP is let out with an annula rent of Rs15000/-

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3 Replies

Rajagopalakrishnan R (PARTNER) (1417 Points)
Replied 15 September 2011

Since the House property is in the joint name of H & W the computation has to be made in same manner i.e 50-50 only. It does not matter that wife's income now is not taxable. ( Who knows it may become taxable after including the 50% share of rent)

So calculate the HP income for the property and divide the net result Income or loss by two and include in each person's return

1 Like

deepak (C.A & C.S Final) (63 Points)
Replied 12 January 2012

For Tax Planning Purpose,

WIFE ( NO TAX WILL COME, by doing following calculations )

Let us not estimate how much will be Tuition Income.

Here in your case, Income from House Property will attract Sec 26(Co-owners)

Annual Rent 1,50,000

Less:- 30% Deduction (45,000)

Income from House Property 1,05,000

Therefore, Inocme from House Property will be divided Equally in Wife's Income and Husband's Income.

So Anewhere below or equal to Rs 1,37,500 - Tuition Income can be shown.

HUSBAND

If your Salary exceeds the Basic Exemption Limit,then the Employer will submmit you FORM 16, under which TDS will be deducted on monthly Basis.

Rest, you can avail benefit under Chapter VI.

1 Like

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 12 January 2012

Originally posted by : deepak
	For Tax Planning Purpose, WIFE ( NO TAX WILL COME, by doing following calculations ) Let us not estimate how much will be Tuition Income. Here in your case, Income from House Property will attract Sec 26(Co-owners) Annual Rent 1,50,000 Less:- 30% Deduction (45,000) Income from House Property 1,05,000 Therefore, Inocme from House Property will be divided Equally in Wife's Income and Husband's Income. So Anewhere below or equal to1,37,500 - Tuition Income can be shown. HUSBAND If your Salary exceeds the Basic Exemption Limit,then the Employer will submmit you FORM 16, under which TDS will be deducted on monthly Basis. Rest, you can avail benefit under Chapter VI.