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Two persons own a let-out house in definite and ascertainable shares. How is the income from the house assessed under the Income-tax Act, 2025?

Question and options

Two persons own a let-out house in definite and ascertainable shares. How is the income from the house assessed under the Income-tax Act, 2025?

  1. Both together as an association of persons

  2. Both together as a firm

  3. The co-owner with the larger share, on the whole

  4. Each co-owner on his share

Answer and explanation

Correct answer: D - Each co-owner on his share

Section 24(1) of the Income-tax Act, 2025 provides that co-owners with definite and ascertainable shares are not assessed as an association of persons; each is assessed separately on the income computed for his share. Section 24(2) also gives each co-owner the self-occupation relief individually.

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