Income on house property

Amol Rajadhyaksha (Querist) 20 April 2014 This query is : Resolved
I am planning to purchase house property for letting out and staying on rent in a house closer to my office. The legal ownership of the purchased property will be jointly with my mother. Also she will be a co-applicant for the home loan. In respect of funds, the equity will be entirely brought in by me and the EMI will also be serviced by me. I do not want my mother to go through the trouble of complicated tax filing. So can I show the entire rental income and the interest deduction benefit under my tax computation? The rent agreement will be in my name. Pls advise.

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ajay sethi (Expert) 20 April 2014
if both you and your mother are co owners of flat then rental agreement with tenant also has to be in joint names . if your mother is co owner of flat 50%^of rental income would be her income .

The interest component of home loans is allowed as deduction under Section 24 B for up to Rs1.5 lakh in case of a self-occupied house. In case the house is in the joint name of your mother and you (joint loan), each one can avail of Rs1.5 lakh interest component deduction. it is important to show the loan repayment by both you and your mother as they can avail of Rs1.5 lakh each on loan interest deduction.

Rajendra K Goyal (Expert) 20 April 2014
well advised by the expert ajay sethi ji, agree to it.

You can account for 50% of rental income in your return and interest deduction upto 1.5 lacs.