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Income from house property

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Vaibhav

Individual

25 Points Posted on 12 March 2012

While calculating my personal income tax, I have an issue with "Income from House Property". The details are as follows:

- I own a flat jointly with my parents which has been given on lease

- Till October,2011 the tenant was giving the rent in equal parts to all three of us

- After that the tenant changed, and the rent was credited only to my mother's bank account

- We have a joint home loan for this house

- Only I pay the EMI for the loan

Now, what is the correct way of calculating the income and who all can take tax benefits?

i.e. what should i enter in the following fields:

1) Annual letable value/ rent received or receivable

2) Tax paid to local authorities

3) Interest payable on borrowed capital

Should it be in the ratio of the ownership, irrespective of who receives the rent? Tried searching the forum, but got all the more confused.

Thanks

Replies (1)

Giridhar S Karandikar

Team Lead

5675 Points Posted on 13 March 2012

All the incomes from Hp & the related payments made should be acounted for equally between all three of you.

However if the tax burden by adding the income from HP is coming more in your case, then you three can make an agreement for sharing the income from House property & the related payments for interest & municipal taxes. You may take a smaller ratio say 30% and the balacne can be shared 35% equally between your parents, provided thye are senior citizens.