If you have a property in your name, you are free to add either your spouse, children, relative or any other person as per your wish as a joint owner. When you join any of them they become the joint owner of the property by default. You can specify the portion of the property either 50% or any other percentage of portion of your choice to be the co-owner.
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You can also sell a portion of the property to the co-owner and register the same in his name with a sale deed duly registered with the concerned sub-registrar of the area by paying the necessary transfer fees.
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You can also gift the property to some one who is either related to you or any other person by executing a gift deed duly registered with the sub- registrar of the jurisdiction on a duly stamped deed.
When you gift a property to your relative, under the purview of gift tax it is non-taxable. In case you gift it to other than relative the value of the property is treated as income and is taxed as per the income tax rule.
Benefits :
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Co-owning the property is always beneficial because one of the co-owner either husband or wife dies, the surviving spouse automatically becomes the sole owner of the property.
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If the couple or joint owners have taken a housing loan in their joint name, each can claim tax benefit u/s 24 of the IT. Act and also separately claim the tax benefit u/s 80C for repayment of principal under housing loan up to-i lakh each.
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According to the Transfer of Property Act, a co-owner has a proprietary right to the entire property. So any transaction needs to be done with the consent of all the owners, unless specifically mentioned in the agreement. The co-owner has full rights to decide whether to reside in it, give it out on rent, or even sell it. Whenever the house is sold, the co-owners will have to pay tax on the capital gains earned by them. In case of second owner, the capital gains will be computed on the basis of the market value of the house as on the date that it was sold or gifted to him.
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