Deduction u/s 24(b)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 May 2011 My client is an Individual assessee, purchased a bunglows for his residence in the year 2010-11. In the sale deed the name of buyers of the property are two, first name is his( individual ) and second name is his wife. The consideration is paid from his HUF money as down payment and the rest is borrowing from bank. The bank has financed on the said residential unit in the joint name of the assessee, his wife and HUF. The loan installments are paid from HUF account who carried business as a proprietor.
Qury :
The amount of interest on the loan is around 10.00 Lakhs. Should all the three borrower can claim individual deduction of interest u/s 24(b) Rs. 1.50 lakhs each? i.e Rs.1.5 Lakhs husband, Rs.1.5 Lakhs wife and Rs. 1.5 Lakhs HUF. What is the correct method to claim interest ? What is the treatment for deduction of principal repayment of loan ?

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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07 May 2011 IN THIS CASE ON PAPER THE INTT IS PAID BY HUF HENCE IT WILL ONLY BE ELIGIBLE FOR DEDUCTION U CAN ASK UR CLIENT TO REIMBURSE THE INTT TO HUF BY CHQ
FM NEXT YR ONWARDS ALL THE THREE SHALL PAY INTT ATTRIBUTABLE TO THIER PART
U MAY OPEN A ACCOUNT FOR THE PURPOSE IN WHICH ALL THE THREE WILL TRF MONEY FM THEIR ACCOUNT OUT OF THIS COMMON ACCOUNT THE PYMT BE MADE TO BANK

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