Income from property owned by co-owners [ Section 26 ]

Income from co-owned property treated in owners' hands; self-occupation yields nil annual value and interest deductions, let-out income apportioned.

Income from property held by co-owners with definite and ascertainable shares is taxed in the hands of the individual co-owners, not as an association. If each co-owner self-occupies, the annual value for each is nil and each may claim the applicable interest deduction separately. If the property is let out, income is computed as if owned by one owner and then apportioned among co-owners according to their definite shares.