Income from house property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 October 2012
A along with his wife have purchased a house property. The Sale Deed is executed by them jointly and they have contributed equally for acquisition of such property.Both have individual incomes. They have also borrowed funds to meet a part of the cost of the property from a bank. The property is Self Occupied by them

In order to pay EMIs they open a seperate account and deposit money in equal proportion to meet this obligation.

In this respect please clarify the following:

a) Would each of them be entitled to deduction of interest upto Rs 1,50,000 in terms of provisions of section 24(b) of Income Tax Act or would this benefit be limited to their respective share which in this case is 50% to each thus limiting deduction to each individual to Rs 75,000.

b) Would each of them get benefit of decduction Under Sec 80 C in this respect.

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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16 October 2012 DEDUCTUION WILL BE ALLOWED TO BOTH aMOUNT OF DEDUCTION WILL BE AS UNDER
1. RS 150000 OR INTT ACTAULLY PAID EACH WHICHEVER IS LOWER TOTAL DEDUCTION CANNOT EXCEED 3LACS
2. RS 100000 EACH FOR PRINCIPAL
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