Income from Co-Owned Property: Section 26 Clarifies Taxation and Deductions for Co-Owners with Definite Shares

Income from property owned by co-owners is addressed under Section 26 of the Income Tax guidelines. If co-owners have definite and ascertainable shares, the property income is not taxed as an Association of Persons (AOP). For self-occupied properties, the annual value for each co-owner is nil, and they can claim deductions on interest up to 30,000 or 2,00,000 under section 24(b). If the property is let out, the income is calculated as if owned by one person and then apportioned according to each co-owner's share.