Chapter IV - Computation of Total Income
Section 24
Section 24: property owned by co-owners
Section 24 clarifies how house property income is taxed when a property has more than one owner with clearly defined shares - each co-owner is taxed individually on their own share, rather than the group being taxed together as an association of persons.
On this page
Need advice on Section 24?
This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) For property co-owned with definite and ascertainable share, the co-owners shall not be assessed as an association of persons and their income computed separately under this Part as per their respective share shall be included in their total income.
(2) The relief available under section 21(6) shall be provided as if each co-owner is individually entitled to the said relief.
Introduction
The definite-share test is the gateway. Once shares are ascertainable, the property is not treated as one association-of-persons income item; each owner computes and includes their own share.
Key takeaways
Definite shares
Individual treatment applies where co-owners' shares in the property are definite and ascertainable.
Individual relief
Section 21(6) relief is considered as if each co-owner is separately entitled to it.
What Section 24 says
Where a property is co-owned and the co-owners' shares are definite and ascertainable, the co-owners are not assessed as an association of persons for that property. Instead, each co-owner's share of the income (computed separately under this Part) is included in their own individual total income (section 24(1)).
The self-occupied nil-annual-value relief available under section 21(6) is given to each co-owner individually, as if each co-owner were separately entitled to it (section 24(2)).
Establish each ownership share
Use the title deed or other governing ownership document to establish that each co-owner's share is definite and ascertainable.
If shares are not definite, this section's express individual-assessment rule does not resolve the treatment; examine the applicable provisions separately.
Apply house-property relief individually
Compute the income under the house-property provisions for each owner's share, then include it in that owner's total income.
Evaluate Section 21(6) self-occupied relief for each co-owner individually, as subsection (2) directs.
Step-by-step flow for applying Section 24
- 1
Are the co-owners' shares definite and ascertainable?
- No: Section 24 does not apply; examine the general provisions of the Act.
- Yes: Go to the next step.
- 2
Do not assess the co-owners as an association of persons
Section 24(1).
- 3
Compute income from the property and split it by each co-owner's share
- 4
Is any co-owner claiming self-occupied nil annual value?
- Yes: Each co-owner gets the Section 21(6) relief as if individually entitled to it (Section 24(2)).
- No: Include each share in the respective co-owner's total income.
Practical checklist
Do
- Keep the co-ownership deed and allocation schedule with each owner's property computation.
- Check each co-owner's Section 21(6) position separately.
Avoid
- Do not assess a definite-share co-ownership as one association of persons under Section 24.
- Do not assume an undefined ownership split meets the definite-share condition.
Illustrative example
Worked example: a let flat owned 60:40
Hypothetical facts (illustration only, not a real taxpayer): Two sisters own a let flat in a 60:40 ratio recorded in the sale deed. The annual value under Section 21 is ₹4,00,000.
Definite shares
The sale deed fixes the shares, so Section 24(1) applies and they are not assessed as an association of persons.
Elder sister's share
60% of ₹4,00,000 = ₹2,40,000.
Younger sister's share
40% of ₹4,00,000 = ₹1,60,000.
Further computation
Each sister applies the remaining house property provisions to her own share in her own return.
Outcome
- ₹2,40,000 and ₹1,60,000 are included separately in the two sisters' incomes.
- If they instead lived in a co-owned house, each could treat it as her own self-occupied house for Section 21(6).
Glossary
- Definite and ascertainable share
- A co-owner's ownership fraction that is fixed and capable of being determined for separate computation.
- Association of persons
- A collective taxpayer category from which Section 24 excludes qualifying definite-share co-owners for this property income.
Frequently asked questions
How is house-property income assessed when co-owners' shares are definite and ascertainable?
Each co-owner's separately computed share is included in that co-owner's total income; the co-owners are not assessed as an association of persons for that property.
Can each co-owner separately claim the self-occupied property benefit?
Yes - Section 24(2) says each co-owner is treated as individually entitled to the section 21(6) self-occupied relief.
What if co-owners' shares are not definite and ascertainable?
Section 24(1)'s individual-assessment rule is expressly framed for co-ownership with definite and ascertainable shares; it does not state the treatment of other arrangements.
Need help applying this provision to your situation?
Talk to our tax team about this sectionLast updated 9 October 2026