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Couple joint property rent query

Udgam Koomar (Tax Technologist) (1949 Points)

14 June 2018

Husband and wife have a flat in joint name, till now in past 2 years husband has been showing the rental income in his returns, now they have decided to show the rental income in wifes return for this year, is this possible, what needs to be taken care of?

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177852 Points)
Replied 14 June 2018

Go with ownership percentage.......... or just divide 50:50 .....

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Udgam Koomar (Tax Technologist) (1949 Points)
Replied 14 June 2018

But as I said initial 2 years the husband showed it complete in his return, so should not be the trend followed, deptt may ask now what changed and it has been done to avoid tax. Also if the husband bought it complete from his money, under clubbing should nto he only shows as his income?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177852 Points)
Replied 14 June 2018

If husband has paid full cost of the flat, he would be treated as 100% owner, and that will be problematic for such a change (unless agreement clearly specifies ownership percentage).......... Otherwise 50:50 ownership is a legitimate step for joint ownerships.....

pdgoenka (Dy Mgr) (123 Points)
Replied 15 June 2018

If agreement is in joint name and home loan agreement states wife as co-borrower and also EMIs have been paid by husband only. Still Can the rental income be split 50:50 ?