What is Co-ownership?
Co-ownership means where a single house property is owned by more than one person.
How to calculate tax on House Property income in case of co-ownership?
If there are multiple owners of a single house property, then the income shall be taxed in the hands of all such owners in the ratio of their ownership.
Let us understand this with an example:
Illustration: Two brothers, Aarav and Anant co-own a bunglow in the ratio of 40:60. The rent received from the bunglow during assessment year 2016-17 is Rs. 40,00,000. Municipal taxes paid by them add up to Rs. 70,000. No interest is paid on home loan.
Calculation of income under head House Property:
|Particulars||Amount (in Rs.)|
|Less: Municipal Taxes||
|Less: Standard Deduction @ 30% of (A)||
|Taxable Value (B)||
|Income in the hands of :|
|Aarav (40%) of (B)||
|Anant (60%) of (B)||