Housing loan

This query is : Resolved

GIRIRAJ AGGARWAL (Querist)
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07 February 2009 THERE ARE TWO ASSESSE MR.A AND MRS.A TAKEN A HOUSE PROPERTY JOINTLY.

A LOAN IS ALSO TAKEN FOR THAT HOUSE PROPERTY IN WHICH-
MRS.A IS MAIN APPLICANT &
MR.A IS CO-APPLICANT

THE INSTALLMENT OF THAT LOAN IS BEING PAID BY MRS.A BANK ACCOUNT.

SO, WHO WILL GET THE DEDUCTION UNDER
- SECTION 80C(i.e payment of loan against house property) &
- SECTION 24(B)(i.e interest on loan against house proerty)

AND HOW MUCH.

PLEASE REPLY.

K V Subba Rao

K V Subba Rao (Expert)
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07 February 2009 Both Mr A and Mrs A are eligible to get Deduction u/s 80C and claim Interest u/s 24

These benefits can be claimed in PROPORTION OF OWNERSHIP Rights

Normally Bank gives Certificate indicating names of both Mr A and Mrs A, if their names appeared in Sale Deed registered. If there is omission, ensure that both names are indicated in the Bank's Certificate

Only point to be taken care of is that, if ever ITO asks, Mrs A should be able to affirm payments are 'borne' by both of them but Cheque is issued from Mrs A's Account only for convenience sake

Visit http://www.apnaloan.com/home-loan-india/EMI%20payment%20contribution%20between%20co-owners%20who%20are%20co-borrowers.html

Chirag B Shah

Chirag B Shah (Expert)
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07 February 2009 The Benefit of Repayment of Loan U/s.80C and Related Interest can be Claimed by Mr.A & Mrs A Subject to their Ratio & Confirmation from Bank/Institution from where the Loan is Obtained.

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CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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07 February 2009 Principal Repayment u/s 80-C can be claimed by the "payer" whereas interest on house property u/s 24-b can be claimed by "co-owners".

K V Subba Rao

K V Subba Rao (Expert)
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13 February 2009 On a reconsideration of reply posted by me on 7th Feb 09, I agree with the view expressed by Sri Nitin on 7th Feb 09.

I also invite the Readers' attention to the following link:

http://www.taxworry.com/2009/01/can-quantum-of-deduction-us-24-section.html