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Income from house property

DJ (Proprietor) (63 Points)

11 March 2014

Hello experts,

A married woman - residing at her in-laws house - now owns a flat in Navi Mumbai. This flat is not yet occupied (for over a year after gaining possession). She has taken a loan for purchasing this property with her husband named as the co-owner. She pays the loan installments and society maintenance charges from her own income. This woman is a tax payer. Is she liable to consider any income from her said own flat? If yes, how to compute her receivable income from this flat and how much tax is payable? Any exemptions / deductions are allowed?

Thanks for your help.

Warm regards.

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3 Replies

MANJULA (Article assisstant) (103 Points)
Replied 11 March 2014

As per Section 27(i) only in case of transfer of house property by an individual to his spouse otherwise than for an adequate consideration, the transferor is deemed to be the owner of the transfered property.

In this case the women is the owner of the property she owns it in his own name i.e., from his own income hence, it would be taxable in her hands only.

Deduction form Annual Value as per Section 24 i.e., Section 24(a) - 30% of Net Annual Value and Section 24(b) - Interest on Borrowed Capital.

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DJ (Proprietor) (63 Points)
Replied 11 March 2014

The property is NOT TRANSFERRED to the woman. She has puchased it herself - by obtaining a loan on her own. The husband is just a co-owner.

And she is not residing in this flat - nor has she given it on rent to anyone. Its lying vacant for over 18 months since obtaining possession. And the woman resides with her husband and her in-laws.

Question is: Given situation, since this is the only property on her own name, will the NAV be considered nil?

Regards.