Hi friends,
Just want to clear my doubt as both my lawyers are giving different suggestions, as i am going through 125 and HMA 24, in need to give my expenditure and income details, among other things, i have a flat in which my brother and myself are owners, the flat is bought on loan, and emi is still being paid. since the last one year, the flat was rented out to a tenant, the agreement was done on my brothers name, the rental payment cheque was also received in his name, i was not involved whatsoever in this contract, but my lawyer says that since you are a co-owner in the flat, it is assumed by the court that the income received is divided equally between us, even though the contract is in his name and cheque received is in his name. is this correct?
and secondly will this rental income be considered as income, as
The emi is Rs 14000
the rent received is Rs 8000
we both contribute Rs 3000 each which totals out to Rs 14000 and pay it to the bank as EMI.
Since the home is not occupied by me and my brother, then will it be considered as income from other source.? and included in the income head for Sec 125?
also while filing IT returns, who will show the rental income while filing returns, my brother or both of us in our respective IT returns.
Thank you all ......
