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ITR Filing 2024-25: The central government has extended the last date for filing ITR for the financial year 2024-25 from July 31 to September 15, 2025. There is also a lot of confusion regarding tax filing. If you also own a house and have given it on rent to someone.
Are you wondering whether tax will be levied on his income or not or if that house is in the name of both husband and wife, then who will have to pay tax? If such questions are coming to your mind, then you are at the right place. Let us tell you about the rules related to tax on rental property.
Provisions have been made by the Income Tax Department for tax on rental income. First of all, tax has to be paid on rental income. But there are rules for this. If a husband and wife own a house and they get some fixed amount of rent on it. Then tax will be levied on them. According to Section 26 of the Income Tax Act, 1961, when a joint property (house) is owned by multiple people and their shares are fixed and clear, then the income from that property is calculated for tax in the name of each co-owner according to their share.
Can claim
At the same time, each co-owner can calculate the income of his share independently. They can also claim deductions like standard deduction under section 24 or interest on borrowed capital separately. This income has to be shown by each co-owner in his individual income tax return. This means that each one pays tax on the basis of his share, which ensures clarity and fairness in tax calculation. This rule ensures that the income of the joint property is divided properly.
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