Situation 1: 1. Property owned by 3 Co-owners 2. Share of Assesse - 30 %. 3. EMI is divided as per the ownership rights.
Assesse will be claiming only 30 % of Interest on Housing Loan u/ 24 of IT Act.
Situatuin 2: 1. Property owned by 3 Co-owners 2. Share of Assesse - 30 %. 3. Entire EMI is paid by this Assesse. 4. No other Co-owners are claiming Interest on housing loan u/s 24 of IT Act.
Query: Can the Assesse claim the entire amount of Interest on Housing Loan? as entire EMI is paid by this Assesse and also no other co-owners claiming the interest.
21 February 2009
Sec 24 benefit towards Interest on Home Loan can be claimed only in proportion of ownership rights. So even if one person pays entire amount of EMI, he can only claim his share. This is because expenditure is allowed on "due' basis.
Sec 80C benefit towards principal repayment can however be claimed by person who actually pays it irrespective of share in property. This is because deduction is allowed on "payment' basis.
You find several Articles clarifying this point. Take the aid of google
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