Saturday, 31 May 2014

Can Only Wife Show Rent Even If The House Is Jointly Held With Husband?



Section 26 of the I T Act provides mechanism of assessment of income from house property in case, the house property is under joint ownership. Read the relevant provision



26. Where property consisting of buildings or buildings and lands appurtenant
thereto is owned by two or more persons and their respective shares are definite and ascertainable, such persons shall not in respect of such property be assessed as an association of persons, but the share of each such person in the income from the property as computed in accordance with sections 22 to 25 shall be included in his total income.
The aforesaid provision very clearly provides that whatever is the income from the jointly owned property, it has to be divided proportionately among joint owners as per provision u/s 26 of the I T Act. The deduction of interest u/s 24 and municipal tax deduction shall also be allowed separately to all joint owners as each of them are exclusively assessable under I T Act for their share in property.

Accordingly answer to your specific questions are :
1. Yes,rent can be paid in single name of your wife.
2. She can only show the income up to the extent she has share.
3. Yes, you will have to show the rent in your income according to your proportionate share in property..
4. No , she is not required to file return of income if the income from rent and other income does not cross the basic exemption limit applicable in case of a woman.

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