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Income from House Property

Sreedevi Damodaran (Accounts Executive) (75 Points)

11 December 2010

Hi All

Its been a very long time. I have a doubt on Income from House Property for my husband. My Husband had taken a Housing Loan for His Uncle's Property. Since he had to pay personal Loan to his Uncle, he was paying half of the EMI. Now that his uncle has sold the property to other party, they are closing the Loan. I have queries due to these transactions.

1. Will my Husband's income be taxed (but he is not getting anything out of this transactions).

2. What should he do further regarding income from House Property while submitting income tax returns.

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2 Replies

Bharat Khurana (Student) (153 Points)
Replied 13 December 2010

The income from house property shall be taxable in your uncle's hand since he is the owner of the property. There will be no deemed ownership in your husband's hand. Further Your husband will not be eligible to claim deduction u/s 80c regarding the payment towards principal amount.