house property rental agreement

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 March 2010 The house property is owned jointly in the name of husband and wife. Now we want to give our property on rent. Can we make a agreement in name of one person i , e in the name of wife.

What will happen in case :-
1. Where share is house property is defined or not defined.
2. If property is taken by taking loan.

Is it right way to make agreement in the name of wife only?

In whose balance sheet this property will be shown if share is not defined?

Pls advise.

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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14 March 2010 1. If the share is defined rental income is taxable as per defined share otherwise in equal proportion.
2. interest paid/due on loanm is fully deductible without any limit out of rental income of the person who has taken loan.
3. Give POA in my wife name and then she can enter into the rent agreement on self and husband behalf, but the income is taxable separately in each hand.