26 August 2010
My wife and I are employed in Bangalore. We intend purchasing an apartment jointly, the cost of which including stamp duty etc will be approximately Rs 75 lakhs. We are taking a Home Loan of Rs 40 lakhs.How do we apportion the amount of Rs 1.50 lakhs interest amount allowed by Income tax as deduction from Income from house property? Should it be on the basis of the ratio of our investments or should it be on the basis of the ratio of the EMIs that we pay ( and therefore on the ratio of the interest amounts actually paid by each of us)? Both of us are in the 30% tax bracket now, but after DTC comes into force I will be in the 30% slab and my wife will be in the 20% slab. Thanks.
26 August 2010
First of all; I am happy to note that you are going to buy your own house.
The deduction would be available on the basis of EMI paid by each one.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
26 August 2010
Thank you, Mr Rakhecha. Therefore, can I , being on 30% slab pay more by way of EMI and claim a better deduction than my wife, even though our investment may be at a slightly different ratio. I was planning to take 70% of the available deduction on my account and 30% on my wife's. Will this be a fair assumption and not raise any awkward queries later from Income Tax department? Thanks