interest on housing loan repayment ??

This query is : Resolved

CA Abhishek Singh (Querist)
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11 April 2011 i have three queries relating to interest on housing loan repayment.

1.)loan is taken after 2005 in the joint name of husband & wife total interest paid is 205000/-. how much to be allowed under sention 24b ??

2.)in case of default in some cases the outstanding balance instead of decresing increses. suppose loan of Rs.10,00,000/- becomes 1500000/-. then will in subsequent years repayment will be allowed as deduction u/s. 80c>

3.) interest & principal to be allowed on the bais of provisional certificate allowed by bank or actual ??

Thanks in advance.waiting for your reply.
my id abhipcc@rediffmail.com

Mandar

Mandar (Expert)
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11 April 2011 1) Both of you can claim entire Rs. 2.05 Lakhs interest as deduction. May be you can claim Rs. 1.5 Lakhs & remaining your wife can claim. Or you can claim deduction in tha ratio of loan obtained by both of you.
2) you can still claim principle u/s 80C provided you actually "paid" the amount.
3)you Bank issue provisional certificate & you can claim the deduction based on that. You can claim final deduction in your return of income based on actual certificate ( certifying the actual amount of interest & principle paid )issued by Bank.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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11 April 2011 1) If the wife and husband have equal share of ownership in the house property as per the property document,each of them can claim 50% of the interst under section 24(b) of the Income tax Act,1961 subject to a maximum of Rs.1,50,000/- per annum per person. If not,law does not permit to share equally.

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