INCOME TAX23 Sept 2026
Tax benefits on co-owned house hinge on actual contribution, not ownership share | Mint
A recent Mumbai tribunal ruling says tax benefits on a jointly owned house depend on how much each co-owner actually paid, not whose name sits on the title. This affects couples buying property together. In the case, the taxpayer won exemption under Section 82 on his full ₹72.83 lakh long-term capital gain. So keep proof of who paid what.
Key Statutory Highlights
- The Mumbai Income Tax Appellate Tribunal held that a co-owner's exemption under Section 82 depends on the amount actually invested in the new house, not the ownership share.
- In Himanshu Manoranjan Bhatt v. ITO, the tribunal allowed exemption on the entire ₹72.83 lakh long-term capital gain and deleted the remaining taxable gain of ₹4.33 lakh.
- Experts say the same logic applies to the Section 22(b) home loan interest deduction, which depends on each co-owner's liability and contribution towards the interest.
Actionable Advice for Taxpayers / Founders:Keep the payment trail, sale proceeds records and bank statements showing who actually funded the purchase, since these help establish your claim if the transaction is questioned. Check with a tax professional before assuming a fixed share of the exemption.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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