23 June 2010
I want to know about who will get the deduction of interest on housing loan in following situation The house is jointly owned by husband and wife. The housing loan is also jointly taken. but the repayment is done by the wife from her business's cash credit account. The husband has not paid the the single installment. my query is though the loan is joint and property is jointly owned, whether the wife can get 100% deduction of interest and repayment U/s 80C?
23 June 2010
The house property has co owners in such a case both the owners or one owner can claim the interest u/s 24(b) as it is allowed on due basis but the principal amount u/s 80C is allowed on payment basis so it should be allowed to the person who is actually paying the installments.
Now talking about your case wife can take 100% deduction for interest as well as for principal amount.
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