I have taken home loan from Bank. I got possesion also. Now My wife is a co-applicant of the house. Presentely I am not working and my wife is a govt. employee and she wants to avial the 100% Tax benefit from housing loan. She is also paying the Installments. Can she avail or eligible for 100% tax benefit. If yes then what is the procedure and under which Income Tax artical I can find this. So that I can show the proof to accounts department.
21 December 2012
Yes your wife is eligible for claiming tax benefits. For that bifurcate the EMI in interest and installment. Under section 24, she can claim an exemption upto a maximum of Rs 150000 for the interest paid. And under sec 80C, she can claim a deduction upto a maximum of Rs 100000 for the amount of installment.
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