Deemed let out joint property

ASSISTANT DIRECTOR

I have purchased a flat jointly with my father. This is my 2nd flat but my father's first. The share of ownership is 1:4. Since this is my second flat , can the same be treated as deemed let out in my case and self occupied for my father? My parents stay in that flat.

 
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ADVOCATE

Your Query: I have purchased a flat jointly with my father. This is my 2nd flat but my father's first. The share of ownership is 1:4. Since this is my second flat , can the same be treated as deemed let out in my case and self occupied for my father? My parents stay in that flat.

Reply:   In your case you may state that  your 1/5th share, is let out to the other co-owner, ie; your father, for which a formal Rent Agreement may be required along with evidence for actual receipt  of the Rent amount. 

             Your father can state that his 4/5th share is self-occupied. 

 
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Practicing Lawyer

Dear 

The Act no where states that a person can own only one house for self occupancy There may be occasion where one may own more than one house for self occupancy i.e. one at the place of his business/profession or employments, 2nd at his native place where his family may be staying and yet another where his dependent parents are staying.  In your case your share in joint property owned along with your father can also be treated as self occupied since it is being used by your parents for their own residence.  There is no need to show any deemed income from this jointly held property.

.

 
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Assistant Manager- Taxation

Yes, This is Legally Right.

This situation Belongs to Case of 'Co-Owners', For The New House, You are A Co-Owner along with Your Father & Your Share 1/5 In your Hands.

Refer Section Analaysis Given on Co-ownership for House Property, Section 26 Of Income Tax Act ,1961- Under this Link:http://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-26 

 

Once Your Share income Is Determined You Can Claim this as for "Deemed let out", Considering Your Other House as "Self-Occupied".

If you need How to Calculate the  Self-Occupied House Property Income Tax Calculation,  You Can Refer the Section Analysis Given on this Page Link:http://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-23

 
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