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Deduction u/s24(b) by co-owners

Sumit R Das (Article Assistant) (40 Points)

10 September 2015

My client and his Brother had a Joint Account and taken a Home Loan on it. Now the question arises that whether they both can claim Interest on Home Loan as deduction u/s24(b) fully or 50:50???? House type: Self occupied

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3 Replies

S. Shiroor (Others) (1207 Points)
Replied 10 September 2015

1) Housing loan should be from a recognized Hsg Finance Co

2) House should be in Joint name

3) Housing loan should be on joint name.

4) Principal and Int on borrowed Capital should be shared 50:50.

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Sumit R Das (Article Assistant) (40 Points)
Replied 10 September 2015

What about Interest on Home Loan ??? Should they divide equally or claim full amount u/s 24(b)???

S. Shiroor (Others) (1207 Points)
Replied 10 September 2015

S.No 4 is clear - Int on Borrowed capital means Int on Housing loan.

I would like to add here. If A is the payng the entire EMI by any chance bcoz B was not able to finance that Then A should take both Principal and Int .