Rental Income taxation if Jointly Owned Property

This query is : Resolved

D M (Querist)
Follow

06 August 2024 Hi Team,
If we have a jointly held property and rental agreement is made with first & second holder.

As per agreement First Holder is getting the rental income in their Individual Bank Account

How the rental income should be considered for taxation purpose?

Is it as per the Rental Agreement both owners should be taxed as per their ownership holding ?or
It should be who receives income in their bank account
or
It doesn't matter who receives the income but either of the Joint property holders can show in their Income tax return ?

Appreciate you help.

Thanks,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

06 August 2024 It's as per the Rental Agreement both owners should be taxed as per their ownership holding.

D M

D M (Querist)
Follow

07 August 2024 Thanks for your reply sir.

But just want to check as per the Rental Agreement if Holder 2 shows the rental income in their income tax return as it helps to reduce tax burden on Holder 1 is it possible?

Thanks,

Upgrade to CAclubindia Pro. Subscribe Now!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

07 August 2024 Not possible go as per ownership and rental agreement.