I am Santhosh S. Auditor & Tax consultant, One of my client paying loan principal Rs.2 lakhs and interest Rs.2 laksh against self occupied housing loan. Housing loan in the name of X (husban) & Y (wife) name but the property in the in the name of Y. Loan repayment is going form Y account. Y already having investment Rs.1 lack that she can clime u/s. 80c. My question is shall I clime principal Rs.1 lac u/s 80c and U/s 24 Rs.1.5 lac in X account. Please advice,
25 June 2009
Hie, If you go by the provisions contained under the act, then there is no formula or any provision as such which will segregate or define the path in the event that you have mentioned in your query but as far as fair practice is concerned you have to segregate the amount of Principal as well as Interest payment on the basis of loan taken and claim the deduction under the respective provisions like section 24(b) and section 80C of the act.
25 June 2009
Deduction u/s 24(b) is allowed on accrual basis. So, if you have taken loan on two names then principally it has to be distributed between the two, equally, irrespective of the fact that whole amount is paid by anyone.
If one person out of the said two paid the whole amount then he/she is just discharging his liability of housing loan by paying more amount.The amount of interest remain same in both cases, no one can claim the deduction of other.
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