I personal a property is in joint names of me and my mom. All the house mortgage EMI for this home are paid by me. Can I take full lease revenue in my mom? Can she additionally declare the tax advantages in respect of house mortgage?
The revenue of an asset belongs to the one who has paid for it. I’ve presumed that your mom has not contributed something in direction of value of the home held in joint names. So simply because your mom has been added because the joint proprietor, she doesn’t turn out to be proprietor of the home. So the lease earned on this property belongs to you and no portion of it may be proven as her revenue. In the event you present the lease acquired as her revenue, the revenue will nonetheless get clubbed because of clubbing provisions of Part 60 which gives that revenue will probably be clubbed within the arms of proprietor of the asset when revenue is transferred with out transferring the asset.
In case your mom has contributed in direction of value of the home then you’ll be able to take the rental revenue in your identify and your mom’s identify within the ratio of contribution made by your and your mom each towards value of the home. Whereas computing the respective shares of each of you, deal with the principal of house mortgage as your contribution in direction of the price of the home.
Because you alone are servicing the house mortgage, you solely can declare the tax profit in respect of the EMIs paid by you.
Balwant Jain is a tax and funding professional and will be reached on jainabalwant@ gmail.com and @jainbalwant on Twitter
Supply: Live Mint