04 January 2015
I PURCHASE A 1 BHK FLAT(665 SQ FT) IN MUMBAI. I AM THE FIRST OWNER AND MY WIFE (HOUSE WIFE) IS THE SECOND OWNER OF THE FLAT. I TOOK 40 LACS LOAN FROM MY EMPLOYER (ONGC), WITHDRAW 12 LACS PF AND REST 40 LACS FROM MY SAVINGS. THUS THE 100% CONTRIBUTION FROM MY SIDE. REGISTERED AGREEMENT DOCUMENT DOES NOT MENTION ANYTHING ABOUT THE CONTRIBITION OF THE TWO BUYERS. MY WIFE IS A HOUSE WIFE AND DONT HAVE ANY INCOME.
NOW, I HAVE GIVEN THIS FLAT ON RENT. I HAVE REGISTERED THE L&L AGREEMENT. MY QUERIES ARE AS FOLLOWS:
1) CAN I TAKE THE RENTAL INCOME CHEQUE ON WIFE'S NAME. WILL I HAVE TO PAY TAX ON IT? 2) IF I TAKE RENTAL CHEQUES ON MY NAME, WHAT WILL BE THE TAX LIABILITY? (I FALL IN 30% TAX SLAB) 2) CAN I DEDUCT EXPENSES LIKE BROKERAGE PAID TO THE AGENT FOR GIVING THE FLAT ON RENT? 3) WHAT IS THE BEST WAY TO SAVE TAX ON RENTAL INCOME IN MY CASE?
05 January 2015
In your case provision of section 27 will applicable i.e. deemed owner. In that case you will be treated as deemed owner and you required to pay taxes.
Further, If you tried to show that your wife is the ultimate owner of house, then in that case provision of wealth tax would be applicable and your wife need to pay taxes under wealth tax.
Therefore, it will be better for you include it in your income only. Further, you can claim standard deduction at 30% under section 24 only irrespective amount of expenditure. If you have still any query you can directly mail me at camukeshkumar@consultant.com
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