Can the revenue of a joint property be taken in single identify? | Mint

I’ve purchased a residential property with my spouse by taking a joint residence mortgage. I’m the one one repaying the mortgage. We have let loose this home. The rental settlement is made within the identify of my spouse, and the lease is credited to my spouse’s checking account. We keep in a rented home, paying ₹15,000 per thirty days. How can I save revenue tax on this scenario?

I’m a salaried worker and obtain HRA from my employer. It is clear that the down cost of the home was funded by you, and the EMIs are additionally being paid by you alone, and due to this fact, you alone are the useful proprietor of the property. 

So the rental settlement and revenue ought to have been taken into your checking account, logically. The rental income can’t be taken into her account simply because her identify is added as a joint proprietor within the sale settlement. This is patently fallacious and never as per the regulation. Ensure that the rental revenue is included in your ITR for F.Y. 24-25 and take the rental revenue into your checking account henceforth.

Against the rental revenue, you’ll get a regular deduction of 30% along with the curiosity cost being made for the house mortgage. 

Old Tax Regime vs New Tax Regime Effect

If you go for the old tax regime, you’ll be able to declare full curiosity in opposition to rental revenue, however loss beneath the home property head is allowed to be set off in opposition to different heads of revenue as much as ₹2 lakhs yearly, and the unabsorbed loss shall be carried ahead for set off in eight subsequent years.

If you go for the new tax regime, you’ll be able to declare curiosity paid on a house mortgage solely to the extent of taxable lease, because the loss beneath the home property head will not be allowed to be set off in opposition to different revenue beneath the brand new tax regime. The extra curiosity can neither be set off in the course of the present yr nor can or not it’s carried ahead to subsequent years for set off.

As far as availing the advantages in respect of HRA is worried, that is obtainable provided that you go for the previous tax regime. You can declare HRA advantages if you’re paying lease for a property which is occupied by you and isn’t owned by you, even in case you personal some other home. 

Amount of HRA exemption obtainable

The quantity of HRA exemption obtainable at a minimal is as per the next factors:

1. 50% of your fundamental salary acquired can be HRA if you’re staying in a metro metropolis, else it’s 40%.
2. Excess of lease paid over 10% of the fundamental wage
3. Amount of precise HRA acquired.

Without particulars of your HRA and fundamental wage, I can’t specify the precise quantity of HRA exemption obtainable to you.

Balwant Jain is a tax and funding professional and will be reached on [email protected] and @jainbalwant on his X deal with.

Disclaimer: The views and suggestions made above are these of particular person analysts, and never of Mint. We advise buyers to examine with licensed consultants earlier than taking any funding selections.