Please tell me what is the tax treatment of housing loan taken on joint property which is given on rent & instalments are paid by one person only. Also treatment of rent income when shares of joint owners are not ascertainable.
3 Replies
CS Alok Mishra
(Income Tax Practitioner)
(786 Points)
Replied 12 November 2011
In my opinion , the person who pays installment will only be liable to take exemption.
If ownership is not ascertainable then all joint property holders will be liable to take equal advantage, however if there is any dispute then A.O. will decide the ownership share.
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 15 November 2011
It will depend upon the agreemnt between teh joint owners. If the other owner does not ahve interest in the property & only one of them pays the instalments then the preson paying the instalment will only be eligible to avail the tax benefit on housing loan.
In case the shares are unascertainable then they should be divided between the jt owners equally.
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