# Income from House Property — Joint Owners (Section 26)
## General Rule
Where a property is owned by two or more persons whose shares are definite and ascertainable, each co-owner is taxed separately on his share of HP income.
## Computation
1. Compute the total HP income of the property as if it were owned by one person.
2. Divide the income among co-owners in their ownership ratio.
## Special Provision for SOP
Where the jointly owned property is used as SOP by all co-owners:
Each co-owner is entitled to claim interest deduction separately.
The limit of ₹30,000 / ₹2,00,000 applies to EACH co-owner (not to the property as a whole).
Condition: Each co-owner must have actually paid the interest.
## Practical Insight
Joint ownership of SOP between spouses can effectively give ₹4,00,000 total interest deduction (₹2,00,000 each).
## Conditions
Shares must be definite and ascertainable.
Each co-owner must have a bonafide ownership (deed should reflect this).
For SOP interest, payment must be from each co-owner's own funds.
Worked example
### Example 1
LOP — Joint Owners Example: Property co-owned by Mr. A (60%) and Mrs. A (40%). Computed HP income = ₹3,00,000.
Mr. A's share = ₹1,80,000
Mrs. A's share = ₹1,20,000
### Example 2
SOP — Joint Owners Example: Mr. X and Mrs. X jointly own (50:50) and self-occupy a flat. Joint loan of ₹40,00,000 — interest paid ₹4,50,000 (each paid ₹2,25,000 from own funds). Conditions for ₹2,00,000 limit met.
Mr. X: Loss from HP = (₹2,00,000) [restricted from ₹2,25,000]
Mrs. X: Loss from HP = (₹2,00,000) [restricted from ₹2,25,000]
Total family deduction = ₹4,00,000
⚠️ Common exam mistakes
Applying the ₹2,00,000 interest cap to the property as a whole instead of per co-owner.
Allowing one co-owner's full interest claim where the other co-owner actually paid.
Treating informal/undefined sharing as 'joint ownership' under Section 26 (shares must be definite).
Not dividing HP income in ownership ratio.
Bare-Act text Section 26 · Income-tax Act, 1961 · click to expand
Section 26: Where property consisting of buildings or buildings and lands appurtenant thereto is owned by two or more persons and their respective shares are definite and ascertainable, such persons shall not in respect of such property be assessed as an association of persons, but the share of each such person in the income from the property, as computed in accordance with sections 22 to 25, shall be included in his total income. Explanation: For the purposes of this section, in applying the provisions of sub-section (2) of section 23 for computing the share of each such person as is referred to in this section, such share shall be computed, as if each such person is individually entitled to the relief provided in that sub-section.