in case of joint holders(father son) of a house , if the loan is taken by 1 holder and the cash paid by other e.g say 1cr loan taken by 1 holder and abt 25 lakhs paid by other will the rental be split tht ratio or can they have agreement or split the rental 50 -50 for saving tax?
2 Replies
CA Sunil Kumar
(Chartered Accountant)
(4524 Points)
Replied 11 July 2018
Ownership is must for taxation of rental income. Section 26 of the Income Tax Act gives clear guidelines for taxation of property jointly owned by co-owners that Rent received is required to be apportioned in the ownership ratio.
Sarath Rajendran
(Nil)
(2791 Points)
Replied 11 July 2018
Rental income can be proprtioned on the basis of their holdings ratio in that property
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