House Property income for Co-Ownership

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.)
Annual Value

40,00,000

Less: Municipal Taxes

70,000

(A)

39,30,000

Less: Standard Deduction @ 30% of (A)

11,79,000

Taxable Value (B)

27,51,000

 
Income in the hands of :
Aarav (40%) of (B)

11,00,400

Anant (60%) of (B)

16,50,600

 

Did you know Mytaxreturns with its Expert team can assist you in filing your return?  Click here to know more.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Let an Expert assist you in filing your return

Recent Tax Insights

Categories

Advertisement