Hoam Loan Interest
This query is : Resolved
16 May 2011
Dear Sir,
We have bought New House With joint name husband & wife By Hoome loan,We have paid interest above 320000,Principal amount 210000 than we will exemp both form 16 interest 1500000 & pricipal 1000000 me & her
We have bought New House With joint name husband & wife By Hoome loan,We have paid interest above 320000,Principal amount 210000 than we will exemp both form 16 interest 1500000 & pricipal 1000000 me & her
16 May 2011
If you have taken the home loan in joint name, the tax benefit (for both principal repayment and interest paid) would be available to both of you if the house is also in joint name.
The tax benefit is available in the ratio of EMIs paid – thus, if person 1 pays 40% of the EMIs, and person 2 pays 60% of the EMIs, the tax benefit would also be available in the proportion of 40% & 60%
The tax benefit is available in the ratio of EMIs paid – thus, if person 1 pays 40% of the EMIs, and person 2 pays 60% of the EMIs, the tax benefit would also be available in the proportion of 40% & 60%
16 May 2011
for advantage and disadvantage of loan in joint name .
visit
http://www.raagvamdatt.com/Advantages-and-disadvantages-of-home-loan-in-joint-names/194/
visit
http://www.raagvamdatt.com/Advantages-and-disadvantages-of-home-loan-in-joint-names/194/
16 May 2011
me pay 60%
principal 100000
interest 1500000
her pay 40%
Principal 100000
interest 150000
than he & me both exempted pricipal 100000 & interest 150000 both form 16
principal 100000
interest 1500000
her pay 40%
Principal 100000
interest 150000
than he & me both exempted pricipal 100000 & interest 150000 both form 16
16 May 2011
yes.
just follow the example
Let’s say you and your spouse both earn Rs. 10 Lakhs per year.
For the home loan, you repay Rs. 1,40,000 per year as principal, and Rs. 2,50,000 as interest.
If the home loan is in just your name, both these deductions would be available only to you – but subject to the upper limits (or caps). Thus, your taxable income would be:
Rs. 10,00,000 - Rs. 1,00,000 (for principal repayment) - Rs. 1,50,000 (for interest payment)
Which is Rs. 7.5 Lakhs.
The income tax saving would be:
(Rs. 2,50,000 * 30%)
= Rs. 75,000.
But if the home loan is in joint names, and both you and your spouse repay the EMIs equally, both of you would get equal benefits.
Thus, the taxable income for each of you would be:
Rs. 10,00,000 - Rs. 70,000 (for principal repayment) - Rs. 1,25,000 (for interest payment)
Which is Rs. 8.05 Lakhs.
The income tax saving would be:
(Rs. 1,95,000 * 30%)
= Rs. 58,500 each, or Rs. 1,17,000 total – an extra gain of Rs. 42,000 in our example!
just follow the example
Let’s say you and your spouse both earn Rs. 10 Lakhs per year.
For the home loan, you repay Rs. 1,40,000 per year as principal, and Rs. 2,50,000 as interest.
If the home loan is in just your name, both these deductions would be available only to you – but subject to the upper limits (or caps). Thus, your taxable income would be:
Rs. 10,00,000 - Rs. 1,00,000 (for principal repayment) - Rs. 1,50,000 (for interest payment)
Which is Rs. 7.5 Lakhs.
The income tax saving would be:
(Rs. 2,50,000 * 30%)
= Rs. 75,000.
But if the home loan is in joint names, and both you and your spouse repay the EMIs equally, both of you would get equal benefits.
Thus, the taxable income for each of you would be:
Rs. 10,00,000 - Rs. 70,000 (for principal repayment) - Rs. 1,25,000 (for interest payment)
Which is Rs. 8.05 Lakhs.
The income tax saving would be:
(Rs. 1,95,000 * 30%)
= Rs. 58,500 each, or Rs. 1,17,000 total – an extra gain of Rs. 42,000 in our example!
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