We have taken a home loan from and booked a flat which is under construction. Flat has been booked in both's name. We are paying full EMI while the loan disbursement is construction linked. We are stayin in rental house.
I am paying EMI on monthly basis and taking 50% amount from my wife's account on half yearly basis.
Can we both claim deduction of PRINCIPAL REPAYMENT? If yes, should we have to give any type of declaration or documentation?
20 October 2009
Agreed with Sanjay. You can claim the interest part & principle part in 50:50 basis.
Regarding declration & undertaking, you need to submit the declaration to your employer for the same. Format is as follows :
DECLARATION
Deduction u/s 24(b) & u/s 80(c)(xviii) of The Income Tax Act 1961 w.r.t. Interest On Capital Borrowed & Repayment of Principle Sum
To , XXXXXXXXXXXXX Pvt Ltd
I hereby declare that the 50% Interest on capital borrowed by me of Rs XXXXXX from > for purchase / construction of house property located at > is being claimed by the co-applicant i.e. > u/s 24(b) of the Income Tax Act, 1961 for the Financial year 2009 - 2010.
I further declared that the repayment of principle sum Rs. XXXXXX for the said loan is being claimed by the co applicant u/s 80(c)(xviii) of the Income Tax Act, 1961 for the Financial year 2009 - 2010.
The Information given above is correct, complete and truly stated.
CAclubindia
