Combined home loan - 1,50,000/- on interest limit i

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J KOTESWARARAO (Querist)
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15 March 2013 I have two home loans

1) taken combined home loan with my brother for a joint property and both are paying half of the emi. The interest on home loan is 2,00,000/-. The house is self owned (by our parents).

2) taken a home loan individually and the interest on this home loan is 2,00,000/-. The house is rented. and monthly rent is 5000/-. and no taxes paid as it is a new house.

for a self owned house interest of 1,50,000/- is for individual limit or combined limit (in my case with my brother)?

what is the total interest for home loan i can claim for both of the houses?

Thanks in advance

Sumit Grover

Sumit Grover (Expert)
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15 March 2013 query 1 :
Each of the joint owner(i.e. you & your brother) are entitled for deduction of interest upto Rs. 1,50,000/- . But from the facts stated by you,it seems that your parents are the owner of the property, hence neither you nor brother shall be entitled for any deduction. However,if both of you are the co-owner of the property, then you both shall be entitled for Rs. 1,00,000 each(since in your case, actual interest allocable to each owner is less than Rs. 1,50,000)

Query2: For the other house(let out by you), you are entitled for full deduction of full amount of interest(i.e. Rs. 2,00,000)

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J KOTESWARARAO

J KOTESWARARAO (Querist)
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15 March 2013 For the home for which joint home loan taken is a single house and is a joint property for me n my brother (50:50).

Now pls clarify whether in my case 1,50,000/- limit is applicable individually or jointly. i.e, i can claim 1,00,000/- in my case or is it to be restricted to 75,000/-?

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Sumit Grover

Sumit Grover (Expert)
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15 March 2013 Rs. 1,50,000 is eligible individually ....thats why I mentioned that both of you are entitled for deduction of Rs. 1,00,000 each in the house jointly owned by you and your brother.

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J KOTESWARARAO

J KOTESWARARAO (Querist)
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16 March 2013 Thanks Sumit.

Any second opinion pls.

Sumit Grover

Sumit Grover (Expert)
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16 March 2013 Section 26 can also be referred for the same which clearly states about individually eligibility for the interest