One of the clients (he is in 30% tax bracket) and his wife is a house wife (no income).
The husband wanted to buy a house with home loan. Now the question is, if he goes for registering the house in his wife name alone or register as joint owner for the house, won't the client get the complete benefit of principal deduction u/s 80c and interest u/s 24b in full as he will be repaying the loan EMI from his income source?
16 December 2012
Thank you Vaibhav, So if the house is purchased in joint name keeping the husband as first holder, then the husband can get the exemption on the repayment of principal and interest on loan taken by him..Right? And there won’t be any question of sharing the exemption in the ratio as per ownership of the house.
16 December 2012
He will get the deduction / exemption or whatever you call, who DESERVES the same is the underlying principle. When wife is not having any income, she does not deserve any deduction or exemption either. Your views please, Vaibhav & Rashmi.
As you indicated, even though Wife is a part owner in the property, Husband is entitled to get full deduction/exemption on principal and interest payment since wife has no source of income as well as contribution in repayments. Right ?
18 December 2012
IN MY OPINION SINCE THE RESPONSIBILITY OF PAYING LOAN IS JOINTLY. BOTH THE PERSON WILL GET 50% OF THE TOTAL INTEREST AND PRINCIPAL IRRESPECTIVE OF THE FACT WHO IS PAYING.
CAclubindia
