Property Co-ownership Provisions for Rental Income: Section 26 of Income Tax Act, 1961 and Clause 24 of Income Tax Bill, 2025

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....e from properties owned by co-owners, comparing Section 26 of the Income Tax Act, 1961 with Clause 24 of the proposed Income Tax Bill, 2025. The provisions are fundamental to determining how co-owned properties are taxed and how the income is allocated among co-owners. 2. Objective and Purpose * Both provisions aim to: * Establish clear guidelines for taxing income from co-owned properties ....

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.... to property types 3.3 Key Components Analysis 1. Co-ownership Criterion: Both provisions maintain the fundamental requirement of: * Multiple owners * Definite and ascertainable shares 2. Assessment Approach: * Both provisions explicitly exclude assessment as an association of persons * Individual assessment principle is retained 3. Income Computation: Section 26: * References S....