Home Loan Interest Benefit

This query is : Resolved

Sanjay Dodrajka (Querist)
Follow

24 July 2009 Hi,

If there is a single property held in joint name of husband and wife(Let us name them A&B). They have taken a home loan on the same for which the interest itself comes to above 3 lacs during 2008-09.

Can both of them claim Home Loan Interest benefit of 1.5 lacs each(Under Loss from House Property) if :

1. A, the husband, has paid all the instalments of the loan.

2. A & B both have equally contributed towards the instalments.

Rgds
SD

Prakash Kanaka M.P.

Prakash Kanaka M.P. (Expert)
Follow

25 July 2009 The maximum interest can be claimed from a single property is Rs.1.50 Lacs. If A the husaband has paid all the installments of the loan, A can claim the deduction of Rs.1.50 Lacs. If A & B both have equally contributed towards the instalments, either A or B can claim max of Rs.1.50 Lacs only. Both cannot claim 1.50 each. ( If you are a deductor and if the property held in joint name, you should take a undertaking from the holder that only one person claims the deduction)

Sanjay Dodrajka

Sanjay Dodrajka (Querist)
Follow

25 July 2009 Thanks.

Can I please get reference to Section/Rule or decided case law which can support this.

Rgds

Upgrade to CAclubindia Pro. Subscribe Now!

Prakash Kanaka M.P.

Prakash Kanaka M.P. (Expert)
Follow

01 August 2009 Hi Sanjay,
You can refer Income tax rules- Income from House property.
Section 24(b).

In a single house, both cannot claim as self occupied.

If you have 2 floors, then 1 floor can be shown as Self Occupied by A and the second floor can be shown as letout property by B and can claim the deduction under income from house property.