Rental income from jointly-held property taxable in hands of each co-owner

When income in Form 16 is reported in excess, a revised Form 16 can be obtained from the employer

I and my wife jointly hold a property. In the joint loan, the first name is hers but entire loan payment is done from my account. Rental is received in my wife’s account. While filling ITR I am claiming benefits of home loan. Do I need to show rental income in my ITR? –Kamal Pandey

Rental income earned from jointly-owned property is taxable in the hands of each co-owner, in proportion to the share owned. Since you and your wife are legal owners from a tax perspective, the rental income shall be disclosed in your ITR as well, restricted to your share in property. You shall be eligible to claim deduction of the interest paid on loan.

Under which section, i.e., 17(i), (ii), or (iii), tax free gratuity, commutation of pension and leave encashment on retirement is to be shown? —G Teli

Tax free gratuity is covered under Section 17(1)(iii), commutation of pension under Section 17(1)(ii) and leave encashment on retirement under Section 17(1)(va). Accordingly, all the three items of income shall be covered under 17(1) of the I-T Act.

I am a senior citizen working as a consultant with a private company. In 2018-19, the company had shown one month additional income paid and TDS deducted. When I pointed this to the company accountants, they informed that refund will come from the I-T department. What should I do? —R S Gopal

When income in Form 16 is reported in excess, a revised Form 16 can be obtained from the employer. Hence, you should ask your employer to revise Form 16 encompassing correct income and TDS details. The employer can do this by revising its TDS return.

I am a salaried employee. I want to know if there is any tax saving scheme which does not have interest. I am a Muslim and dealing with interest is not allowed in my religion —S Tanzim

You can invest in LIC policy to insure the life of self, spouse or your children. Investment in LIC attracts deduction under Section 80C subject to maximum Rs 1.5 lakh. Moreover, you shall also receive bonus at the end of the maturity period. The amount received on maturity of LIC policy, inclusive of bonus, is exempt from tax subject to certain conditions.

[“source=financialexpress”]

Author: Loki