Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

deduction u/s 24(b) for interest on loan very urgent

vijay singla (learner) (340 Points)

11 March 2010

dear friends, pls let me know , a person has taken loan in joint name with his wife for his house . the house is in the name of the person . he is paying the installment of loan alongwith interest from his account. can he claim entire interst under section24(b) from his income i nspite of the fact that loan is in their joint name. pls specify any circular in this respect if any

Reply
Follow
Share

17 Replies

saranraj (CA FINAL) (419 Points)
Replied 11 March 2010

yes u can claim.

Upgrade to CAclubindia Pro. Subscribe Now!

C.Balaji (Learner) (1867 Points)
Replied 12 March 2010

Dear Friend........

Since he is the owner of the property and loan payment also made from his account.......

I think he can claim entire interest repayment.........

1 Like

vijay singla (learner) (340 Points)
Replied 12 March 2010

i hav also same opinion but i need any case law, circulars etc in support of this. thanx

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 12 March 2010

You can claim full amount as your are paying installment from your account

vilas m koli (ca) (21 Points)
Replied 12 March 2010

YES U CAN CLAIM FULL AMOUNT OF DEDUCTION AS THE DEFINITION OF FAMILY INCLUDE SPOUSE AND CHILDERN WHO IS DEPENDENT ON INDIVIDULE ASSESSEE THEIRFORE U CAN CLAIM DEDUCTION U/S 24

Upgrade to CAclubindia Pro. Subscribe Now!

CA Priya (CS Final) (1049 Points)
Replied 12 March 2010

What circular u need yer.. He is paying Interest and principal of loan from his earnings....... So the basic fact itself serves the requirement of the section..... he is absolutely eligible to claim....... Cheeeeeeeeers.........

S.Srikanth (Cost Accountant ) (346 Points)
Replied 12 March 2010

Yes Mr.Vijay

There is no doubt in claiming the deduction

Under sec 24(b) of IT act.person owning the house fully or jointly he is eligible for claim.

in your case he owns the house jointly with his wife so he is eligible u/s 24(b)

Rajat Singhal CA,CS,CFA (Senior Manager (F&A)) (254 Points)
Replied 13 March 2010

See Vijay,

Everything is not needed to be clarified with circulars or explanations, we had to interpret the law and in this case section 24(b) is very clear. So dont worry and u can surely claim the deduction of interest under section 24(b) and deduction of EMI under section 80C.

Regards

Rajat

C.Balaji (Learner) (1867 Points)
Replied 13 March 2010

All our friends are correct.....U can claim interest.....No problem

Shudhanshu Agrawal (Business) (2570 Points)
Replied 13 March 2010

Yes everybody is right...moreover if you see.....50% deduction which is available to wife is also not used by the wife. If wife takes her 50% deduction then only restriction will come upto 50% for husband.

For more clarification if you have taken any loan jointly with minor then minor cannt pay the installment as there will be no income in his case.....then also full deduction will be available to you although property is jointly taken.

Upgrade to CAclubindia Pro. Subscribe Now!

S.Srikanth (Cost Accountant ) (346 Points)
Replied 13 March 2010

Yes deduction will be apprpriate according to their ownership but minor can't be taken into account...if for eg 3 persons Say X,Mrs.X,A (Minor Son oF X) owns a house.

here, the deduction will appropriate only to x and his wife irrespective of 3 joint owners

vijay singla (learner) (340 Points)
Replied 13 March 2010

thanx friends

Ayushraj (Professional) (125 Points)
Replied 17 March 2010

What is the exact creiteria to claim deductions u/s 24 (b) & 80C?

Is the condition important that as to who re-pays the Housing Loan?

What if the loan is jointly in 2 names and in a F.Y only first holder repays the same, but in the next F.Y both contributes equally and in subsequent F.Y only Second holder re-pays the same.

What is the exact creiteria to claim the benefits?

Ayushraj (Professional) (125 Points)
Replied 19 March 2010

What is the exact creiteria to claim deductions u/s 24 (b) & 80C?

Is the condition important that as to who re-pays the Housing Loan?

What if the loan is jointly in 2 names and in a F.Y only first holder repays the same, but in the next F.Y both contributes equally and in subsequent F.Y only Second holder re-pays the same.

What is the exact creiteria to claim the benefits?