Rental income for Taxation
Maheshvjti
(Querist) 12 November 2015
This query is : Resolved
Dear all,
Happy DIWALI to you and your family.
VHI need your expert opinion for consideration of rental income for Taxation. I have purchased home in Navi Mumbai and I have taken home loan from SBI. I have mentioned my wife as a co owner in the registration document of home but I have taken home loan on my name as my wife is house wife.
Now I am planning to rent my home and planning to make lease agreement between my wife and tenant. If so is it possible to show rental income as my wife's income?or as I am paying EMI of home loan, it will be considered as my income? I am availing tax benefits on home loan EMI.
R.K Nanda
(Expert) 12 November 2015
consult tax lawyer.
Maheshvjti
(Querist) 12 November 2015
Thank you for your advice
Hemant Agarwal
(Expert) 12 November 2015
1. IRRESPECTIVE of the Home-Loan parameters and the Lease agreement parameter, "IF" the House is reflected in the Income Tax returns of the Husband "AND" the Wife (in ratio of 50% each), THEN both of them would be liable separately BUT EQUALLY for all the rental income received from leasing out the Home.
CONCLUSION: Rental Income can be claimed ONLY by that person who has reflected the House in its Income Tax Returns.
Keep Smiling .... Hemant Agarwal
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Maheshvjti
(Querist) 13 November 2015
Thank you sir for your detailed explanation.
Happy DIWALI
Maheshvjti
(Querist) 13 November 2015
Thank you sir for your detailed explanation.
Happy DIWALI
K.S.Srinivas
(Expert) 14 November 2015
If the loan is taken in your name and also it is reflecting the same in I.T. Returns, then the rental income should be shown as your income only.
Rajendra K Goyal
(Expert) 14 November 2015
Repeated query:
http://www.lawyersclubindia.com/experts/Rental-income-for-Taxation-569976.asp
