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 dwelling mortgage?
The revenue of an asset belongs to the one that has paid for it. I’ve presumed that your mom has not contributed something in the direction of price of the home held in joint names. So simply because your mom has been added because the joint proprietor, she doesn’t change into 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. If you present the lease acquired as her revenue, the revenue will nonetheless get clubbed as a consequence of clubbing provisions of Section 60 which supplies 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 the direction of price of the home then you’ll be able to take the rental revenue in your title and your mom’s title within the ratio of contribution made by your and your mom each towards price of the home. While computing the respective shares of each of you, deal with the principal of dwelling mortgage as your contribution in the direction of the price of the home.
Since 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 skilled and could be reached on jainabalwant@ gmail.com and @jainbalwant on Twitter
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