Housing loan intt

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abhishek jain (Querist)
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18 August 2012 A home loan is taken in the name of Two persons and property is also registered in the name of both person. how to claim Deduction of intt. on loan and principal amount in income tax return ? deduction for intt and principal amt can be claimed by one of the co-owener or equally divided b/w them ?

CA Navin Jain

CA Navin Jain (Expert)
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18 August 2012 Deduction of intt and principal loan can be allowed in the ratio of loan amount taken.

CA Guru M

CA Guru M (Expert)
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18 August 2012 In addition to above reply, i would like to mention that dedution u/s 80C & u/s 24(ii) is allowed only if it paid by the assessee.

In case of Co owner if one the co owner pays entire EMI, deduction is not allowed to both co owners.

Further co owner who paid entire EMI can claim only to the extent of his ratio.

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Guest

Guest (Expert)

18 August 2012 Tax saving get divided among co-applicants in case of a joint loan in the same proportion in which the asset is owned by each co-applicant.

Each co-applicant can claim a maximum tax rebate of up to Rs. 1 lakh for principal repayment u/s 80C and Rs. 1.5 lakh for interest payment u/s 24.

Guest

Guest (Expert)

18 August 2012 The repayment of a joint loan has to be made from a joint account owned by the co-applicants. Each of them needs to contribute his/her share to the account. If it is not possible then there has to be a method whereby the other individual is contributing his/her share.