My spouse and I own a property together, and we both put in the same amount of money from our own incomes. Can we split the rental income and interest on the loan for the property so that each of us pays tax on it separately based on our shares?

February 20, 2024 13:20

Yes, according to the Income Tax Act, 1961, if you and your spouse jointly own a property and contribute equally, you can choose to show the rental income and claim the allowed deductions in proportion to your respective ownership shares. This is known as "co-ownership" and is allowed under the income tax laws. Each co-owner will be taxed individually on their share of the rental income.

Related to