Max (Professional) (38 Points)
14 September 2010Hello,
I have a query here. A HP is owned jointly by 3 people. How should the interest paid on housing loan and the rental income earned on the same be divided? Is there a standard procedure. If 2 sons are paying the interest on the home loan and taking deduction for it, do they have to be party to the rental income or the rental income can be passed on to the father who is a senior citizen and has no other source of income. The house is in the anme of all 3.
Megha
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 14 September 2010
Dear Max,
In case of joint ownership, where their shares are definite, the amount must be charged on each co-owner on the basis of his share of property. However, if their shares are not ascertainable, it can be taxed as income of Association of Persons
Deepesh Khatri
(CA)
(167 Points)
Replied 14 September 2010
Agree with Mr. Narayanan.
Deduction of housing interest will be allowed to each assessee individually as if he is sole owner of property.
Refer to sec. 26.
Saurabh Toshniwal
(ca final)
(2363 Points)
Replied 14 September 2010
| Originally posted by : CA.G.Muguntha Narayanan | ||
 |
Dear Max, In case of joint ownership, where their shares are definite, the amount must be charged on each co-owner on the basis of his share of property. However, if their shares are not ascertainable, it can be taxed as income of Association of Persons |
 |
agree with above answer
Max Payne
(employed)
(2574 Points)
Replied 14 September 2010
Agree with CA.G.Muguntha Narayanan
Interest deduction can be claimed by the person incurring the interest.
Interest deduction is independent of the proportion of ownership in the property
Bhav Bhuti Sharma
(Towards Professionalism )
(823 Points)
Replied 14 September 2010
Agree with CA.G.Muguntha Narayanan
CAclubindia
