joint ownership of property

[d.v. gupta]

One of my client was joint owner of a property in a.y 2008-09.My client received whole rent of property and tds deducted on the rent in his name. he paid rs. 86000 to the other joint owner towards his share in property. The case was selected for scrutiny and assessing officer not given the credit for payment given to joint owner. he has considered all the rent received by my client. Is his view justified. should we go in appeal.

AI Summary

Joint ownership rental income must be allocated by proportionate share; claim corresponding TDS credit or appeal.
A joint owner should be assessed only on his proportionate share of rental income; gross rent must be allocated among co-owners, with TDS credit claimed only for the taxpayer's share. There is no separate deduction for amounts paid to a co-owner; correct tax treatment is to show rental income net by allocating the gross receipts and claiming proportionate TDS. If the assessing officer includes the entire rent in one co-owner's income and denies corresponding TDS credit, the taxpayer should establish joint undivided ownership and may appeal the disallowance.