Rental Income from Jointly Owned Property

Income Tax Income from House Property
1

Hi,
We have a property that’s jointly between me and my wife. Couple of questions

  1. Should there be any TDS deducted by the tenant while paying the rent? The rent is 60k per month.
  2. Which bank account should the rent be collected to? Should it be a joint bank account, or, individual account is fine? I would prefer the rent to be deposited to the individual account of my wife.
  3. Where/ How should the tenant show the rental for HRA? Should he show both PAN numbers, or a single one?
  4. What should be the share of rental income to be shown by us when we submit our ITR?
2

Hey @rishi5354,

Here are the answers to your questions:

  1. Yes, the tenant needs to deduct TDS as the rent per month crosses the threshold of ₹50,000.
  2. The taxation of rent shall depend upon the bank account in which the rent is collected, in your case, it would be taxed in your wife’s ITR.
  3. For HRA, there is no need to disclose the PAN of the Landlord and if it is required by the employer of the tenant, then they can declare the PAN mentioned in Form 26QC (which needs to be filed when depositing the TDS).
  4. The rent shall be declared in your wife’s ITR as Income from House Property.

In case you want to declare the rental income in both the ITRs, then as per the law, the tenant needs to deposit the rent amount in both the owner’s bank account in the proportion of their ownership in the property. The tenant should also file Form 26QC for both the landlords.

Another option is to transfer your share of rent from your wife’s account to your account, monthly or annually along with filing Form 26QC for the two of you.

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