Home loan

This query is : Resolved

NITIN (Querist)
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04 September 2011 Dear Sir,

I Taken a Joint a/c of Home loan on My Name & My brother name (His Co-Applicant). Me and my both are maintained IT File.
so How to treat House loan in My & my brother file?

House related details as below :

Annual Rent received - 98000 Rs.
Interest paid - 72400 Rs.
Principal Paid - 5200 Rs.
House Value - 820000
Loan amount 550000 Rs.

pl give me suggestion.
Thank Sir.

Iqbal Singh Grover

Iqbal Singh Grover (Expert)
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04 September 2011 Ideally both of you should show one half of the loan in each of your files..

eg Rent received will be 49000 each..
Interest paid will be 36200 each..
Principal paid will be 2600 each..
Value of house will be 410000 each and loan will be 275000 each..

The interest part can be claimed as an expense under income from house property...

The principal part can be claimed as a deduction u/s 80C

Ravi Jhamb

Ravi Jhamb (Expert)
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04 September 2011 In house Property Every Co-owner of the property is considered as Separate entity and can claim deduction individually basis. Every type of expenses and income from property is divided by the co-owner in adequate ratio.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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04 September 2011 The above observations hold good only if the brothers are the owner's of the property and their equal right's are specifed in the property documents.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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04 September 2011 The above observations hold good only if the brothers are the owner's of the property and their equal right's are specifed in the property documents.