Rental income for Taxation
Maheshvjti
(Querist) 12 November 2015
This query is : Resolved
Dear all,
Happy DIWALI to you and your family.
I 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.
C. SANJEEVA RAO
(Expert) 12 November 2015
u cannot make rental/lease agreement between ur wife and tenant. As loan is taken in ur name, u only eligible for the interest u/s.24 of the income tax act, if u show the rental income in ur wife's name it vl b assessed in ur name u/s 64, as she is house wife.
Maheshvjti
(Querist) 13 November 2015
Thank you Mr. Sanjeeva Rao for your advice. If i unferstamd you correctly, eventhough my wife is co owner of house, lease agreement cannot be made between her and tenant.
I am paying EMI, I will be claiming tax benefit for interest u/s 24. Rental income can be in my wife's name but it need to be included under my income as per section 64.
Thanks for clarification.
K.S.Srinivas
(Expert) 13 November 2015
Agreed with Sri C.Sanjeeva Rao.
Rajendra K Goyal
(Expert) 14 November 2015
The house is in the name of both, if it is not occupied by you the income would be taxable. You can claim deduction on EMI / interest paid. You can not claim full relief on rental income, house being in your name also.
Rajendra K Goyal
(Expert) 14 November 2015
Repeated query:
http://www.lawyersclubindia.com/experts/Rental-income-for-Taxation-569966.asp#.VkcCTnYrLIU
