Income from House Property

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

22 June 2010 In case a person owned a house as a co owner with his wife ,there is no spefic share as per the registry/deed.Is it good to show 50% each of the rent they received in each return?The house is from the borrowed funds and EMI for that goes from the Joint bank a/c they both are maintaing,though credit in the a/c comes from the Salary of the person.Wife is also having some income from tutions etc but has never filled her return.

Furhter before this year property was self occupied & interest was being claimed by the person himself as no return was being filled by his wife ,but now she also wants to file her return with 50% renal income & 50 % interest deduction?

Also now they leave in another rented house whose rent is being paid by his employer ,and he wants to take deduction of HRA as per IT Rules.

Is all this as per law?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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23 June 2010 For employment purpose the employee staying other than his own house the both Housing interest and HRA can be claimed.Since your case employer paying rent you should calculate the Rent free accmodation valuation not HRA calculation

Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2010 Thanks for the reply,infact employer is only paying the fixed amount as allowance & not paying directly to the landlord ,is is a part of salary.

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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23 June 2010 If the employer paying fixed allowance to meed the rent expenses you are eligible for claim HRA

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Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2010 Again very much thanks for giving the explanation.Further i will be greatful in case get an opnion on other part of the question also regarding diving of income/interest cost in I tax return of husband/wife as per my query.

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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23 June 2010 for first part

since entire episode is too complex and too keep continuiety it would be best that staus co is maintained and only husband should claim interest on house loan

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Querist : Anonymous

Querist : Anonymous (Querist)

24 June 2010 Yes that is right ,but as husband is already in the highest tax bracket,they want to show half income of wife ,as mentioned property is in both name ,also this is the first year that have got any rental income before that it was being self occupied.