11 October 2008
HOW THE ADMISSIBILITY OF INTEREST AND THE PRINCIPAL ON HOUSING LOAN ON A SELF OCCUPIED PROPERTY OWNED BY HUSBAND AND WIFE IS ASCERTAINED IF THE WIFE IS NOT AN ASSESSEE AND THE HUSBAND ALONE REPAYS THE LOAN FROM HIS SALARY AS A DEDUCTION?
Basically, the deduction u/s 24 is allowed to all the assessees. i.e. in this case wife & husband. wife & husband can claim Rs. 1.50 Lakhs each u/s 24.
13 October 2008
The deduction for Repayment of H.Loan and Interest thereon may be claimed by the person who has the obligation to pay the loan and in turn actually repays the loan. It seems that wife is only a co-obligant to the arrangement of loan and the husband being the assessee will repay the loan in full. In such a condition husband may claim the deduction in full. It is worth mentioning that the ownership of the property in such a case will lie with husband only and wife will beneficially hold the share in property on behalf of husband only.
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