Home loan has been sanctioned by the Bank in the joint name of Mr.A and Ms. B (Husband and Wife). Now, if EMI is to be paid- Either by First Applicant OR Equally by Both i.e. Joint Applicant (50% each)
1. In the above two circumstances, how the employer will allow income tax benefits while issuing Form 16? 2. In the above two circumstances, how the employer will allow income tax benefits while issuing Form 16 provided both are employed with same employer?
17 January 2009
Sanctioning of Home Loan by Bank in Joint names is not the criterion.
Deciding factor is ownership of Home.
Employer can allow Benefits for Interest u/s 24 for Interest and Savings u/s 80C for principal repayment to both husband and wife in proportion of their right in property as per Registration Deed.
Just do not bother from whose Bank account, EMI payments are made. It is their family matter.
As Employer, you have to see Sale Deed to know proportion of ownership and inclusion of both names in Bank's Letter indicating EMI payments
This position holds good irrespective of whether both spouses are working in the same Company or diffent Companies
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