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 |
