Tax excemption home loan

This query is : Resolved

Mugdha (Querist)
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14 December 2018 one of our employee has taken joint home loan with his spouse, employee already having one house property before the sanctioning of the loan , gifted by his father. My query is that that employee is entitle to avail tax excemption of housing loan under section 80c (Principal amt payment)+ 24b (interest paid on loan) .At what extent he can claim the deduction. emi paid by his wife and him.

Z (Expert)
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14 December 2018 My query is that that employee is entitle to avail tax excemption of housing loan under section 80c (Principal amt payment)+ 24b (interest paid on loan)

Yes, and if the property is also in joint ownership then his wife can also claim the benefit of deduction on account of interest.
Even if the property is not in the name of wife, but if the payment is made from her bank account, then she may claim the deduction since she would also be considered an owner to the extent of her share in payment.
Registration name itself is not a conclusive evidence of ownership, if she decides to go in court and prove that she also made the payment then the court would consider her as the owner to the extent of her share in the payment.

At what extent he can claim the deduction. emi paid by his wife and him.
80C upto 1.5 Lakhs, including all other deduction u/s 80C,80CCC,80CCD(1)

u/s 24(b)... Well, there are a lot of things to consider, I'll try inform in succinct manner.

1st, since the husband has 1 house property already, one of the property ought to be treated as deemed to be let out and I would recommend that this new property is deemed to be let out. In such a case, the entire amount of interest payment will be allowed as a deduction.
If the amount of interest is more than the amount of income under the head of house property, then the excess shall be carried forward and shall be adjusted only against income u/h house property (if with 8 assessment years)

prateek63@yahoo.co.in

Carry forward of loss.
71B. Where for any assessment year the net result of computation under the head "Income from house property" is a loss to the assessee and such loss cannot be or is not wholly set off against income from any other head of income in accordance with the provisions of section 71, so much of the loss as has not been so set-off or where he has no income under any other head, the whole loss shall, subject to the other provisions of this Chapter, be carried forward to the following assessment year and—

(i) be set off against the income from house property assessable for that assessment year; and

(ii) the loss, if any, which has not been set off wholly, the amount of loss not so set off,

shall be carried forward to the following assessment year, not being more than eight assessment years immediately succeeding the assessment year for which the loss was first computed.