ITAT issues guidelines for stay of demand.
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Quote from: Aman Aggarwal on August 29, 2011, 02:47:39 AM
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