NITIN MEHROTRA (manager) 04 August 2015

Income from house property

Me and my wife booked a apartment in joint name for a total value of say 'X'.

My wife paid the amount "Y" directly to builder from her bank account.

I paid the balance amount from my bank account and from the home loan taken from bank for which i am paying the EMI.

My question is "In what proportion will the income (rental) from this property will be shared between me and my wife for purpose of income tax."

Note: There is no clear mention of the % share of the property in apartment booking agreement with builder

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5 Replies

adv. rajeev ( rajoo ) (practicing advocate) 04 August 2015

If there is no % is mentioned then it may be treated as 50 : 50

DR. DIMPLE JINDAL (ADV.) (Advocate) 04 August 2015

In the eyes of law, husband and wife are the same person for these type of complex cases. It is better to share equally in two parts rather to prove any more or less share of any one. This is my personal advise as you have told that you have bought the said property on "joint name". As a husband or wife one can give payment on the behalf of another and it is not a issue that one have pay more or less.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 04 August 2015

If the couple has taken a home loan jointly, each person can avail of the tax benefits. Under Section 24 of the Income Tax Act, both partners can claim deductions of up to Rs 1.5 lakh for the interest paid on the home loan. They can also claim tax benefits of up to Rs 1 lakh for the principal amount under Section 80C

NITIN MEHROTRA (manager) 04 August 2015

Although my wife is a co-applicant in the home loan but doesn't have any source of income and EMI is paid from my income so can't claim rebate under section 24. Her only source of income will be the share of the rent from this property. Is it safe to show her share as 50 % without having documentary evidence as her share is not defined in the purchase deed

Ashwani Joshi (Advocate) 05 August 2015

If X/2 is far greater than Y , then you will be considered as the owner in the absence of mention of any share in registration document. If she is not earning and is not contributing towards repayment of loan, she wont get rebate. Best is to share rent in the ratio of investment.

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