Housing loan deduction
This query is : Resolved
17 December 2011
House is owned by wife & Housing loan on such house is taken by husband. Whether husband can claim deduction under section 24B under House Property & 80C? If not whether wife can claim above deduction? Please Reply..
17 December 2011
If housing loan is taken by husband than it means house is in his name, and he is repaying the loan so he can claim rebates principal amount U/s 80c (Maximum 1 Lakh)and interest U/S 24B (Maximum 1.5 lakh if self occupied but if he is claiming rent from his wife than no limit, total interest paid can be claimed)
Abhishek Ranjan Singh
ARS Solutions
email2ars@gmail.com
+91 9022838615
Abhishek Ranjan Singh
ARS Solutions
email2ars@gmail.com
+91 9022838615
Guest
Guest
(Expert)
17 December 2011
1. Since house is owned by wife, Income form house property (IFHP) will be taxable for her not for husband. Only the person for whom IFHP is taxable can claim deduction under section 24B, hence husband can not claim deduction.
Moreover wife also can not claim deduction under section 24B since interest certificate will be issued by bank in favor of husband.
Hence both can not claim deduction for interest amount paid or payable under section 24B.
2. Now coming to section 80C, principal amount is paid by husband so certainly wife can not claim the amount under section 80C.Husband can claim deduction under section 80C in this case.
Moreover wife also can not claim deduction under section 24B since interest certificate will be issued by bank in favor of husband.
Hence both can not claim deduction for interest amount paid or payable under section 24B.
2. Now coming to section 80C, principal amount is paid by husband so certainly wife can not claim the amount under section 80C.Husband can claim deduction under section 80C in this case.
17 December 2011
@ Neha ji
If Housing loan is taken by husband than how can it is owned by wife. as i think he wants to say that her wife is living in that house.
If Housing loan is taken by husband than how can it is owned by wife. as i think he wants to say that her wife is living in that house.
18 December 2011
Neha Ji
Deduction for the principal repayment can't be claimed by both because IFHP tax levy condition, as you mentioned for section 24(b), applies to section 80C(2)(xviii) also.
Deduction for the principal repayment can't be claimed by both because IFHP tax levy condition, as you mentioned for section 24(b), applies to section 80C(2)(xviii) also.
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18 December 2011
@Warrier sir
Please clarify that how can house is owned by wife if loan is taken by husband?
Can bank give this type of loan?
Please clarify that how can house is owned by wife if loan is taken by husband?
Can bank give this type of loan?
02 January 2012
I'm still confused... Please give me final Opinion.
Guest
Guest
(Expert)
02 January 2012
1. Since house is owned by wife, Income form house property (IFHP) will be taxable for her not for husband. Only the person for whom IFHP is taxable can claim deduction under section 24B, hence husband can not claim deduction.
Moreover wife also can not claim deduction under section 24B since interest certificate will be issued by bank in favor of husband.
Hence both can not claim deduction for interest amount paid or payable under section 24B.
2. Now coming to section 80C, principal amount is paid by husband so certainly wife can not claim the amount under section 80C.
Husband also can not claim deduction under section 80C in this case since IFHP is not taxable in his hands.
Hence both can not claim deduction for principal amount under section 80C.
Trust this clears all your doubts.
Moreover wife also can not claim deduction under section 24B since interest certificate will be issued by bank in favor of husband.
Hence both can not claim deduction for interest amount paid or payable under section 24B.
2. Now coming to section 80C, principal amount is paid by husband so certainly wife can not claim the amount under section 80C.
Husband also can not claim deduction under section 80C in this case since IFHP is not taxable in his hands.
Hence both can not claim deduction for principal amount under section 80C.
Trust this clears all your doubts.
16 March 2013
@warrier Sir,
Please clarify whether husband can claim the deduction under section 24 and section 80C if the house is in the name of wife??
Regards
Please clarify whether husband can claim the deduction under section 24 and section 80C if the house is in the name of wife??
Regards
28 July 2024
Yes, a husband can claim deductions under Section 24(b) and Section 80C even if the house is in the name of his wife, provided certain conditions are met. Here’s how these deductions work and what you need to ensure to claim them:
### **1. Section 24(b) - Interest on Housing Loan**
**Deduction Limit**:
- You can claim a deduction of up to ₹2,00,000 per year on interest paid on a housing loan for a self-occupied property.
**Eligibility for Claiming Deduction**:
- **Joint Borrowers**: If the husband and wife are co-borrowers of the loan, both can claim the deduction for interest paid, subject to the ₹2,00,000 limit each.
- **Single Borrower**: If the loan is solely in the husband’s name, he can claim the entire ₹2,00,000 deduction, even if the property is in the wife’s name.
- **Self-Occupied Property**: The property should be self-occupied by the borrower or their family.
**Key Points**:
- **Co-owners and Co-borrowers**: Both co-owners (in this case, the wife) and co-borrowers (husband) can claim deductions based on their share of the interest paid.
- **Documentation**: Ensure proper documentation, such as loan statements and interest certificates, is available to substantiate the claim.
### **2. Section 80C - Principal Repayment**
**Deduction Limit**:
- You can claim a deduction of up to ₹1,50,000 per year on the principal repayment of a housing loan.
**Eligibility for Claiming Deduction**:
- **Joint Loan**: If the husband and wife are joint borrowers, they can each claim up to ₹1,50,000 deduction on the principal repayment, based on their respective shares.
- **Single Borrower**: If the housing loan is solely in the husband’s name, he can claim the entire ₹1,50,000 deduction, even if the property is in the wife’s name.
- **Self-Occupied Property**: The property should be self-occupied by the borrower or their family.
**Key Points**:
- **Principal Repayment**: The deduction is available for the principal repayment portion of the EMI paid.
- **Documentation**: Maintain loan statements and repayment receipts for verification.
### **Important Considerations**
1. **Ownership vs. Loan**: The deductions under Sections 24(b) and 80C are based on the loan repayment and interest payment rather than the ownership of the property. Therefore, even if the property is in the wife's name, the husband can claim these deductions if he is the borrower.
2. **Proof of Payment**: Ensure you have proper documentation to support the claims, such as bank statements showing EMI payments and interest certificates from the lender.
3. **Self-Occupied Criteria**: For Section 24(b), the property must be self-occupied. If the property is rented out or not occupied, different rules apply for claiming deductions.
### **Summary**
- **Section 24(b)**: The husband can claim a deduction of up to ₹2,00,000 on interest paid if he is a co-borrower or the sole borrower, even if the house is in his wife’s name.
- **Section 80C**: The husband can claim a deduction of up to ₹1,50,000 on principal repayment if he is a co-borrower or the sole borrower.
Ensure compliance with documentation requirements and verify the property’s occupancy status to correctly apply these deductions.
### **1. Section 24(b) - Interest on Housing Loan**
**Deduction Limit**:
- You can claim a deduction of up to ₹2,00,000 per year on interest paid on a housing loan for a self-occupied property.
**Eligibility for Claiming Deduction**:
- **Joint Borrowers**: If the husband and wife are co-borrowers of the loan, both can claim the deduction for interest paid, subject to the ₹2,00,000 limit each.
- **Single Borrower**: If the loan is solely in the husband’s name, he can claim the entire ₹2,00,000 deduction, even if the property is in the wife’s name.
- **Self-Occupied Property**: The property should be self-occupied by the borrower or their family.
**Key Points**:
- **Co-owners and Co-borrowers**: Both co-owners (in this case, the wife) and co-borrowers (husband) can claim deductions based on their share of the interest paid.
- **Documentation**: Ensure proper documentation, such as loan statements and interest certificates, is available to substantiate the claim.
### **2. Section 80C - Principal Repayment**
**Deduction Limit**:
- You can claim a deduction of up to ₹1,50,000 per year on the principal repayment of a housing loan.
**Eligibility for Claiming Deduction**:
- **Joint Loan**: If the husband and wife are joint borrowers, they can each claim up to ₹1,50,000 deduction on the principal repayment, based on their respective shares.
- **Single Borrower**: If the housing loan is solely in the husband’s name, he can claim the entire ₹1,50,000 deduction, even if the property is in the wife’s name.
- **Self-Occupied Property**: The property should be self-occupied by the borrower or their family.
**Key Points**:
- **Principal Repayment**: The deduction is available for the principal repayment portion of the EMI paid.
- **Documentation**: Maintain loan statements and repayment receipts for verification.
### **Important Considerations**
1. **Ownership vs. Loan**: The deductions under Sections 24(b) and 80C are based on the loan repayment and interest payment rather than the ownership of the property. Therefore, even if the property is in the wife's name, the husband can claim these deductions if he is the borrower.
2. **Proof of Payment**: Ensure you have proper documentation to support the claims, such as bank statements showing EMI payments and interest certificates from the lender.
3. **Self-Occupied Criteria**: For Section 24(b), the property must be self-occupied. If the property is rented out or not occupied, different rules apply for claiming deductions.
### **Summary**
- **Section 24(b)**: The husband can claim a deduction of up to ₹2,00,000 on interest paid if he is a co-borrower or the sole borrower, even if the house is in his wife’s name.
- **Section 80C**: The husband can claim a deduction of up to ₹1,50,000 on principal repayment if he is a co-borrower or the sole borrower.
Ensure compliance with documentation requirements and verify the property’s occupancy status to correctly apply these deductions.
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