Tax on rental income from second floor of the salf occupied property

- No. As you and your wife are co-owner's in the property. The rent agreement should be in the name of both the owners and rent should be divided equally between you and your wife if share of ownership is not mentioned in the deed. 

If you are earning some income that needs to be disclosed otherwise it would be tax evasion.

Secondly since house is in your and your wifes name rent would be distributed in both your name, also under Income tax act you will get 30% straight deduction from such rent income.

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Thank you.

Hi,

No. If you are actually earning rent, You cant treat the house as self occupied.

You can reduce taxes on rent income if you have taken any loan on the home and paying interest theron. Further, anyways only 70% of the rent is taxable and you get straight 30% deduction. Municipal taxes paid can also be reduced from rent income.

Dear Sir,

It is not advisable to show 2nd floor of your property as self occupied when rental income is generated from that property, it would amount to tax evasion. 

Property is in the name of you and your wife which would mean that rent will be equally distributed between you and your wife and you both will get standard deduction of 30% each straight away from the rent receipts. 

Thanks and Regards 

Divya Chugh 

Hello,

No, you shouldn't claim the house as self-occupied.

30% standard deduction would be allowed against the rental income and further you can claim any interest if you paying for the home loan. House/Municipal Tax paid would be also be allowed.

I hope this answer satisfies your requirements. 

Regards,

CA Hunny Badlani

Dear Sir,

Hope you are doing well !!

No, you can't claim this house as self occupied house.

While computing the income earned from letting out the property, one can avail (where eligible) various deductions available under section 24 of the Income Tax Act to arrive at the net taxable income from house property income. These deductions include standard deduction of 30 per cent, the deduction of municipal taxes and deduction of interest paid on home loan which is allowed under this head.