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Thanks Bala..

Hi

I am a co-owner of the property jointly with my mother and brother with 1/3rd share each. I  have also taken a loan in which i am the primary applicant for the loan and the emi is being paid from my account only.  We have rented the property to someone.Interest amount is far more than the rent amount.

Is it possible that i can show the complete loss in "Income from house property" in my ITR only as i am paying the emi and i am incurring the loss in it.  Co-owners can sign a declaration that they are claiming any tax benefits on this. Please suggest.

Amit

Hi Aman

I am a co-owner of the property jointly with my mother and brother with 1/3rd share each. I  have also taken a loan in which i am the primary applicant for the loan and the emi is being paid from my account only.We have rented the property to someone.  Is it possible that i can show the complete loss in "Income from house property" in my ITR only as i am paying the emi and i am incurring the loss in it.  Co-owners can sign a declaration that they are claiming any tax benefits on this. Please suggest.

Amit

Dear Sir,

In Case of Co-Ownership of property (section 26 of the income tax act), income under the head HOUSE PROPERTY shall be calculated assuming there is a single owner.
Hence all relevant deductions under the act i.e. Standard 30% deduction as well as interest deduction ( maximum Rs.150000 in case of self occupied) will be taken and income calculated thereupon.

The resulting figure that arrives shall THEN be apportioned among the co-owners in their respective share(which is definite & ascertainable) of house property & included in his total income.
Hence the Issue of claiming Rs. 1.5 laks as deduction SEPARATELY to both husband & wife is immaterial.
THE AO is right that both of you can together claim 150000 deduction & not separately in your individual returns.


This has been explicitly provided in the Act by virtue of section 26