Flat is in name of husband, housing loan is taken jointly by husband and wife, whether deduction u/s 80C for repayment of housing loan be availed to wife????
6 Replies
kumarsatish022
(Professional)
(165 Points)
Replied 14 March 2010
Since Housing loan is under joint account. interest and principal shall be splitt up as per the agreement
shushantsinghal
(BCOM(HONS),C.A)
(283 Points)
Replied 14 March 2010
in my opinion the registry of flat is most important.........if flat is in name of husband then only husband will claim interest & principal.......if flat is in name of both then both shall take the benfit....
CA Priya
(CS Final)
(1049 Points)
Replied 14 March 2010
Hey deduction can be claimed if the Loan principle and interest is paid out of the wife's income......
bhushan sachdeva
(ca final student)
(73 Points)
Replied 14 March 2010
according to my opinion where loan repayment is in respect of joint owners husband and wife deduction shall be to the person whose income is high as per clubbing provisions however even if the repayment is made by the wife and she is liable to deduction u/s section 80C but if his husband income is high then deduction shall be clubbed
Lalit Talesra (B.Sc.)
(Student CA & CS Final )
(29 Points)
Replied 15 March 2010
As repayment of housing loan is comprised of two type of payment i.e. Principle and Interest. Thus The benefit of repayment of housing loan can be availed as following : -
1 In respect of Principle Payment - Deduction is available u/s 80C
2.In respect of Interest payment - deduction under Income From House property head resulting as loss from House property .
In both case, deduction shall be allowed on Ownership basis due to following reasons :-
1. Under House property head :- Joint Ownership required
2. U/s 80C :- Because principle amount paid shall be allowed only when Income from house property
on which loan has been taken and repayment made, is assessable under head Income from House property, if any, in the return of Income who has made payment.
In conclusion , Income from House property, if any, shall not be assessable in return of income of wife due to absence of essential element for the purpose of chargeability y i.e. Ownership. Hence In your case deduction can not be claimed.
I would appreciate further rectification in my opinion,if any.
With Regards
Lalit Talesara
( B.Sc. and Pursuing CA & CS )
Sanjay Kumar Sinha Chowdhury
(Practice)
(21 Points)
Replied 17 March 2010
I quote below from Section 80C(2) of the Act :
(xviii) for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head Income from house property (or which would, if it had not been used for the assessees own residence, have been chargeable to tax under that head), where such payments are made towards or by way of
(a) any instalment or part payment of the amount due under any self-financing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis; or
(b) any instalment or part payment of the amount due to any company or co-operative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him; or
(c) repayment of the amount borrowed by the assessee from
(1) the Central Government or any State Government, or
(2) any bank, including a co-operative bank, or
(3) the Life Insurance Corporation, or
(4) the National Housing Bank, or
(5) any public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes which is eligible for deduction under clause (viii) of sub-section (1) of section 36, or
(6) any company in which the public are substantially interested or any co-operative society, where such company or co-operative society is engaged in the business of financing the construction of houses, or
(7) the assessees employer where such employer is an authority or a board or a corporation or any other body established or constituted under a Central or State Act, or
So ,repayment of the amount borrowed by the assessee for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head Income from house property (or which would, if it had not been used for the assessees own residence, have been chargeable to tax under that head), is allowed as deduction,
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