Purchasing a flat with wife's name as the first coowner

The Indian Income Tax Act, 1961 (IT Act), considers a residential house as a source of income. Under the I-T Act, the owner of a house is taxed on the income, in the form of its annual value, under the head 'Income from House Property'. The annual value of a house property is higher of the income earned or the fair rent (expected reasonable rent for properties of a similar size in the same locality). In the case of a self-occupied house, the annual value is nil. In case of taxes, any benefits  out of that goes to first co-owner.

I agree with Mr. Ramachary in his opinion that any benefit namely tax exemption goes to the first owner.  So you plan your strategy to avoid paying income tax accordingly.

Dear Prasenjit,

Incase of joint ownership, the tax benefits can be shared in the percentage of ownership. Incase its 50% each, then interest deduction , principal amount deduction, stamp duty etc can be availed for 50% each. Also these deductions are allowed from salary income also.

I agree with CA Archana Yadav, each one get equal share , You have eligible to get 50% tax benefit