My Query: In the loan agreement there are two borrowers A and B and the property is in the name of B. In disbursement letter name of only A is mentioned. The interest is debited from Bank Account of A. Can the deduction under section 24 of Rs. 150000 claimed by B if he shows the payment of interest by a cheque to A. In the interest certificate name of bothe A and B appears. Pls. clarify
21 July 2009
We undertake LPG cylinder testing (statutory requirement)and painting contract. We are registered under Karnataka VAT Act. Hydro testing is purely labour oriented but painting includes materials. it is a composite contract & what is the VAT Liability involved under the Karnataka VAT act & whether we are liable to charge service tax on this service
21 July 2009
You can 50:50 in both income tax computation.
But now as you said you want this to be claim in B's income tax computation, then you must make sure following;
01. You pay interest & principal repayment amount to A on timely basis by chq. (recommended) 02. A is not claiming this component in his personal income tax return.
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