08 March 2013
As you have taken a joint home loan, both of you are eligible for tax exemption for your share of the EMI paid. I assume both of you are co-borrowers as well.
Yes both of the co-owners can the tax benefit as per the share of EMI paid. In your case ration is 100:000, so you can full deduction subject to the limits provided.
It is better to get it documented that you are paying EMI and co-owner is not claiming any benefits for the same.
Just to correct one part. Regardless of what tax position you adopt in the given case, the deductor is no final authority to decide the allowability of certain exemption or expense.
If in any matter, you wish to adopt a position, which the tax deductor refuses to accept, you reserve the right to adopt your position in your tax return and claim lower tax liability.
It shall be duty of the AO to decide whether or not your tax position is legal or not.
What I said is that the deductor doesn't have the authority to decide whether the tax position adopted by you is allowed or not.
That right rests with the AO if he decides to scrutnize your tax return. A position whether legal or illegal is decided by AO on the basis of the law as it stood in the relevant year adjusted to judicial pronouncements. Needless to say, AO's decision too shall be subject to review and is appealable.
11 April 2013
what language needs to be written on agreement regarding that one co-owner is not taking benefit and not paying any EMI out of his/her pocket.
CAclubindia
