Section 26 of Income Tax Act for AY 2023-24

Notes on section 26 of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Property owned by co-owners.

Amended and updated notes on section 26 of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to property owned by co-owners.

Chapter IV (Sections 14 to 59) of the Income Tax Act 1961 deals with the provisions related to computation of total income. Section 26 of IT Act 1961-2023 provides for special provision for property owned by co-owners.

Recently, we have discussed in detail section 25A (special provision for arrears of rent and unrealised rent received subsequently) of IT Act 1961. Today, we learn the provisions of section 26 of Income-tax Act 1961. The amended provision of section 26 is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 26 of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.

Section-26: Property owned by co-owners

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.


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