Income tax: Can I take full rent in the name of one of the joint owner?

 







The income of an asset belongs to the person who has paid for it. I have presumed that your mother has not contributed anything towards cost of the house held in joint names. So just because your mother has been added as the joint owner, she does not become owner of the house. So the rent earned on this property belongs to you and no portion of it can be shown as her income. If you show the rent received as her income, the income will still get clubbed due to clubbing provisions of Section 60 which provides that income will be clubbed in the hands of owner of the asset when income is transferred without transferring the asset.

In case your mother has contributed towards cost of the house then you can take the rental income in your name and your mother’s name in the ratio of contribution made by your and your mother both toward cost of the house. While computing the respective shares of both of you, treat the principal of home loan as your contribution towards the cost of the house.



Since you alone are servicing the home loan, you only can claim the tax benefit in respect of the EMIs paid by you.

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