(i) It is available to the owner only.
(ii) Yes
Tax from house property
My wife is the owner of the land. She has very nominal income around 2 lacs per annum only. As I have income, bank sanctioned home loan as a co-borrower to me for this property. House is completed and it is let-out. I am paying the EMI fully to the bank. My question is (i) Can I take income tax exemption of 2 lacs and 30% deduction for repairing etc under section 24? (ii) Is it mandatory that the owner of the property (my wife) should show this rental income as 'income from house property' and file return.
Asked 6 years ago in Income Tax
1 since you are not the owner of the house you can't show it as deduction.
2. Yes your wife should show it as income from house property and let her claim this loan as deduction and then you recover this amount from her.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Dear Sir,
Hope you are doing well !!
1. No, you can not claim exemptions and deduction. Only owner can claim the same.
2. Yes. it is mandatory.
Hello,
1. Yes, you can take the interest deduction.
2. Deemed owner receiving financial benefits from the property can also be held liable for tax on such rental income.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
Ask a Chartered Accountant
Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
Ask a CA