Three Persons: Gautam, Sima and Mina.
Gautam and Sima are Husband and Wife
Sima and Mina are Sisters
Gautam is salaried person. Filing returns regularly.
Sima is doing job work home based business (income is below taxable limit). Filing ITR-4 regularly.
Mina is a widow, no children, getting income from Family Pension and Rent. No children. Will file return first time.
Three Properties: X, Y and Z. All are separate properties.
Property-X: Self occupied by Gautam and Sima. They are co-owners and co-borrowers of home loan for this property.
Property-Y: Purchased and Self occupied by Mina (In Sale Deed Agreement registered with Registrar, Mina and Sima are co-owners of the property)
Property-Z: Mina is single owner and property given on rent.
This query is in the matter of filing of return by Sima.
Sima is co-owner and co-borrower in Property-X.
Sima is co-owner in Property-Y, as per registered sale deed agreement.
In the ITR of Sima, Property-X is declared as self occupied.
What about Property-Y? (it is residence of Mina)
Please note that Sima has not paid any amount for purchase of the Property-Y.
(1) Is it necessary for Sima to declare property-Y in her ITR?
(2) If declared, is Propery-Y to be mentioned as self-occupied or deemed let out?
(3) What if not declaring this property-Y in Sima’s ITR?
(4) Sima doing jobwork business of sewing and computer typing jobwork, which ITR to be filed for AY 2017-18, ITR-4 or ITR-3?
6 Answers
Hi,
1 - Is Gautam declaring Property X as Self-occupied in his ITR?
2 - Depends on answer to above question
4 - I believe that ITR 4 (Sugam) can be filed.
Kindly read :
https://www.relakhs.com/new-itr-forms-ay-2017-18-fy-2016-17/
Thank you Sreekanth for your quick response.
In response to your inquiry 1, I state that
(1) Gautam and Sima both declare Property-X as Self Occupied - co-owners (50% share each) and co-borrowers of housing loan and both claiming deduction of loan interest and installments 50:50. Gautam files ITR-1.Gautam does not have any other property.
Please guide me on my queries
(1) Is it necessary for Sima to declare property-Y in her ITR? (no amount paid by Sima for this property)
(2) If declared, is Propery-Y to be mentioned as self-occupied or deemed let out? Thanks,
(2) If declared, is Propery-Y to be mentioned as self-occupied or deemed let out? Thanks,
Hi,
1 & 2 - As Gautam and Sima are husband and wife, it is naturally assumed that they live together (unless they are working or employed in two different locations) in the same home ie Property X.
So, ideally Property Y has to be declared as 'deemed to be let out' as her name is registered in the Sale deed.
Thanks Sreekanth for quick response.
I have one more doubt, if Sima declares Property-Y in her ITR, then she can not file ITR-4 and she has to file ITR-3.
Am I right?
Thanks
Excellent! Yes, you are correct!
As she owns two properties, she has to consider filing ITR - 3 form.
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