Taxability of co-ownership
a)Â Â Â Â Â When shares of joint owners are definite
When shares of joint-owners are definite & ascertainable then income from House-property shall be assessed as the share of each person shall be included in the hands of each co-owner separately as Total Income.
Further, each person will be entitled for separate limits of Rs.30, 000 or Rs. 1, 50,000 in respect of deduction for interest, if house is self-occupied by them.
b)Â Â Â Â When shares of joint owners are not definite
Â In such case, the income of the house-property shall be assessed as that of AOPs.
Where a property is owned by more than one person, and one co-owner has already purchased the respective share of other co-owner, then it can be said that the property has been purchased. Thus, one can invest in House-Property in order to save taxes on Capital Gains.