I have two house property both joint ownership with wife, one is self occupied other rented and rent comes in wife account , her total annual income less than 2 lakhs, hence not filling it return. my income is taxable , now as i have to fill it return, for owning two houses , ITR 2 is to be filled, as already explained, one is self occupied and other is rented, what income should i show against second house, as rent comes in my wife account,
for day to day house requirement i transfer money to account of my wife, does this money would be accounted against her income.
Even if the income from comes in wife's account. Since you both are joint owners you must show 50% rent.
How was investment done in house?
Did you make 100% payment for this rented house?
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Thank you.
No it won't constitute as her income.
Hello
in above case 2nd house in joint ownership thus if any prescribed percentage then income as per percentage otherwise half half income considered for each person
Amount paid to wife for household expenses not treated as her income because she deemed as pure agent in this case because she are doing expenses on behalf of you only
If the payment for buying the house is funded by you, then the rent will anyways be taxable in your hands irrespective of the fact whether it comes to your account or your wife's account.
- If the second house property is entirely purchased from your own sources of income by you then the entire rent will be clubbed in your hands. All deductions related to the rental income will be allowed to you i.e. house tax paid, standard deduction of 30% and housing loan interest if any. Though your wife is a legal co-owner in the property but not beneficial owner as per Income tax Act. In your ITR, also disclose the PAN of the co-owner. At the time of sale of the property, capital gain will be chargeable in your hands only.
- PIN money is not income of wife. Any income generated from such PIN money will be her income.
Dear Sir,
Hope you are doing well !!
In the case of ownership of property, it is usual practice that the contract is made jointly in the name of husband and wife. It is important to firstly understand whether the real income belongs to husband or wife. Is the purchase price of property shared by both or it is just that the husband owns the property ie he has paid the price and the agreement only includes name of wife for security perspective.
No, it won't constitute her income.
Hello,
Being a joint owner of the second rented property, you would be required to declare the rental income based on your share of the property and if no share is specified, half of the rent would be taxable in your hands.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
The amount transferred to wife for household requirements, won't be considered as her income.
Hi
If your 2 house is fully financed by you. then complete rent income will be taxble in hands.
No