16 September 2010
If one loan taken by Mr.X and his spouse jointly means loan agreement there r joint borrowers of loan.Now they r going to purchase one house in their joint name that is house should be in joint ownership.Now my query is interest paid on such loan whether Mr.X and his spouse get deduction u/s 24(b) rs.150000 each for both or only rs.150000 ??
Yes , each co-owner is assessed for income from house property separately . Therefore , allowance of interest u/s 24 is also given separately. But interest is deductible only if the same is borrowed by co-owners i.e even if one is joint owner but not a borrower of the loan is not allowed any deduction of interest. Only the person borrowing the loan is allowed deduction.In case of joint loan , each co-owner gets 1.5 lakh of maximum interest deduction u/s 24 of the I T Act.
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