Income from property owned by co-owners [ Section 26 ] - Income Tax - Ready Reckoner - Income Tax

SEC 26 : TREATMENT OF INCOME FROM CO-OWNED PROPERTY If two or more persons, whose shares are DEFINITE and ASCERTAINABLE , own property then the income from such property cannot be taxed as income of an AOP. If the house property owned by co-owners is self-occupied by each of the co-owners then: The annual value of the property of each co-owner will be NIL and Each co-owner shall be entitled to a deduction of 30,000 or 2,00,000 on account of interest on borrowed capital separately u/s 24(b) 2. Where the house property owned by co-owners is let out then: the income from such house property shall be computed as if the property is owned by one owner thereafter the income so computed shall be apportioned amongst each co-owner as per their definite share.