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TMI Blog2018 (10) TMI 595X X X X Extracts X X X X X X X X Extracts X X X X ..... co-owners of a jointly owned immovable property. There are 13 co-owners holding equal share in 86.78 Cents of land and building. They have rented out these properties to different parties. Total rent from all these properties exceed twenty lakh rupees in a financial year. But, individual share is not exceeding the said threshold. Now, the owners are planning to engage one of the co-owners to coll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration, if his aggregate turnover is not exceeding Rs. 20 Lakhs in a financial year. Co-ownership of the property is for financial, administrative and family reasons. In such cases, a property may be divided by metes and bounds or there can be proportionate ownership of each owner. As per the provisions of the Income Tax Act, 1961, in the case of jointly owned properties, each joint owner is asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to do so. It is settled law under Section 26 of the IT Act that where the property, consisting of buildings and land appurtenant, is owned by two or more persons and their respective shares are definite and ascertainable, such persons shall not, in respect of such property, be assessed as an association of persons, but the share of each such person in the income from the property is included ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dual receipts of a co-owner from all his business, including 'renting of immovable property', exceeds Rs. 20 Lakhs in a financial year, the respective person has liability to register under GST Act. In view of the observations stated above, the following rulings are issued: i) Small business exemption, provided under Section 22 of the GST Act, is eligible to the co-owners separately in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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