Tax on Rental Income

In the case of joint ownership, all co-owners are responsible for paying taxes on joint rental income. Furthermore, they have to pay taxes in proportion to their ownership.

Jointly owned properties are taxed individually, not as a group. Each co-owner is responsible for paying taxes on their share of the property's income and capital gains. The TDS liability for jointly owned properties is typically divided among the co-owners in proportion to their ownership share

Your wife can rent it out.

If you are claiming tax rebate in your own name and not in your wife's name, any rent receivable from the property will be taxble in your hands only. But if the rental agreement is made between your wife and the tenant and rent is paid to your wife, the income tax department will not come to know of it. Does your wife have taxable income and does she file income-tax returns? If so she will have to report the receipt of rent as income from house property and details of ownership of the house property also may have to be given. With PAN Nos. etc there is a small chance of the Income-tax department co-relating returns.