Pls. clarify if interest is paid by A (husband) and property is in the name of B (wife) can deduction u/s 24 of Rs. 150000 be claimed by A (husband) because he is paying the interest. Both A and B are the borrowers in the loan agreement and can both claim the deduction.
21 July 2009
First point is that to claim the benefit of Section 24 the assessee should own the property. So in this case A cannot claim any deduction U/s 24 as he does not own the property.
Whereas in case of his wife B in sec 24 it is not mentioned that who is suppose to pay the interest amount. it is mentioned that the assessee shoudl take a fresh loan which is utlised for purchase or construction or repsir of the house property. As B is also one of the borrower in the loan agreement assuming it to be a fresh loan can claim deduction of Rs. 150000/- u/s 24.
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