The Hindu Business Line : Taxability of rent from jointly-held property

Apparently your daughters are not minor children. Assuming that the property has been settled equally among all four of you, the income by way of rent would also belong to all four of you equally.

The income of your daughters would be assessed to tax in their individual hands. The income of your wife would be, however, assessed in your hands and as your income by virtue of the clubbing provisions in Section 64(1), which provides that where a property is transferred by an individual to his or her spouse for inadequate consideration, the income from such property is to be clubbed in the hands of the transferor.

It is understood that in the instant case, the settlement of the property is by way of gift and without consideration or for inadequate consideration.

What is the basic exemption available for women? — Sheela George

For the assessment year 2008-09, the basic exemption for women, who are resident in India is Rs 1.45 lakh.

For the assessment year 2009-10, the basic exemption for women, who are resident in India is Rs 1.8 lakh. If, however, you are a senior citizen, i.e. 65 years or more at any time in the previous year, the basic exemption would be Rs 1.95 lakh for the assessment year 2008-09 and Rs 2.25 lakh for the assessment year 2009-10.

I work for a public sector undertaking and I am pursuing the company secretaryship course. I pay a tuition fees of Rs 4,200 for this course. Will this fee be eligible for deduction under Section 80C? — D. Murugan

No deduction would be available under Section 80C in respect of such fee paid by you.

Section 80C only allows a deduction in respect of tuition fee paid (excluding any payment towards any development fees or donation or any payment of similar nature), whether at the time of admission or thereafter:-

To any university, collage, school, other educational institution situated within India;

For the purpose of full-time education of any two children of an individual.

In your case, the deduction under Section 80C cannot be claimed, since the fee stated to be paid by you is neither for the education of your children nor is it paid for full-time education in a university, collage, school or other educational institution.

I have paid the tuition fees for my son for the academic year 2008-09 in March 2008.

This means that the fees belonging to the financial year 2008-09 is paid in the financial year 2007-08 itself.

In such a case, will the fees that is paid for the financial year 2008-09 qualify for deduction in the assessment year 2009-10, even though the fees is paid in the financial year 2007-08? — K.R. Suresh

Section 80C (2) allows a deduction in respect of certain sums paid or deposited in a previous year. One of such sums, which qualifies for deduction is in respect of fees paid for the education of a child. In your case, since the fees is paid in the financial year 2007-08, the deduction can be claimed only in the assessment year 2008-09, irrespective of the year to which the fees relates, of course, subject to your satisfying the other conditions in the Section.

My mother got a plot of land as a gift from her brother.

I and my mother had, in our joint names, applied for a loan. The loan has been sanctioned in our joint names. My mother has no source of income of her own.

I pay the EMI of the loan out of my income. I and my mother live in this house.

Can I claim the deduction under Section 24 in respect of the interest and the deduction under Section 88C in respect of the principal repayment? — S.P. Sridhara

It would be possible for you to claim the interest as a deduction under Section 24 and also to claim deduction under Section 80C in respect of the principal repayment.

The law recognises dual ownership in respect of immovable property i.e. the ownership of land by one person and that of building by another. In your case, if you are to be the owner of the house, which has been constructed, though your mother may be the owner of the land, the benefit under Section 24, in respect of the interest on loan and also the deduction under Section 80C on the principal repayment will be available to you.

(Mail your queries to taxtalk@thehindu.co.in or by post to `Tax Talk', Business Line, Kasturi Buildings, 859, Anna Salai, Chennai-600002)

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