Section 24 — Property owned by co-owners
Old Act equivalent: Section 26 of IT Act 1961 Sub-part: C.—Income from house property
Statutory Text
(1) For property co-owned with definite and ascertainable share, the co-owners shall not be assessed as an association of persons and their income computed separately under this Part as per their respective share shall be included in their total income.
(2) The relief available under section 21(6) shall be provided as if each co-owner is individually entitled to the said relief.
Sub-sections
Sub-section (1)
Where property is co-owned with definite and ascertainable shares, each co-owner is assessed individually (not as AOP) and house property income is computed separately based on their respective share.
Sub-section (2)
Self-occupied property relief under section 21(6) (nil annual value) is available to each co-owner individually.
Provisos
None.
Explanations
None.
Tables
None.
Key Structure
- Applies to: Co-owners of property where shares are definite and ascertainable
- Assessment: Each co-owner assessed individually — NOT as an AOP
- Income computation: Separately, based on respective share
- Self-occupied benefit: Each co-owner individually entitled to section 21(6) nil annual value relief
- Condition: Shares must be definite and ascertainable — if not, the co-owners may be assessed as AOP
- Monetary limits: None in this section (individual limits under sections 21 and 22 apply to each co-owner)
Cross-References
- s020-charging — Section 20: charging section
- s021-annual-value — Section 21(6): self-occupied property nil annual value — each co-owner gets this individually per sub-section (2)
- s022-deductions — Section 22(2): interest cap of Rs. 2,00,000 for self-occupied property — applies individually to each co-owner
- s025-interpretation — Section 25: deemed ownership provisions
Amendment Notes
None noted from the extracted pages.
Practical Notes
- This section is particularly beneficial for husband-wife or family co-ownership: each co-owner separately computes house property income based on their share and independently claims the self-occupied nil annual value benefit and interest deduction cap (Rs. 2,00,000 each).
- If shares are not definite and ascertainable, the co-owners may be assessed as an AOP, which could result in a higher tax rate.
- The section uses “definite and ascertainable” — joint tenancy without specified shares does not qualify; shares must be clearly defined (e.g., in the sale deed or agreement).