pawan valecha (CA) (38 Points)
05 November 2011Hello every,
I have a query If a Joint housing laon is taken by 2 persons (X and Y) but for the last whole year only one person (Y) have been paying the whole installment. Whether he (Y) can claim the whole deduction for amount paid by him or he can claim the deduction for his portion of loan only.
Nitesh Gupta
(Articled Assistant)
(145 Points)
Replied 07 November 2011
As per section 26, co-owners, all the deducions u/s 24 and u/s 80C shall be allowed proportionatly, even if it is paid by only one person.
CA Hardik Bunha
(self)
(2121 Points)
Replied 07 November 2011
If your house is self occupied then interest will be computed separated u/s 24(b) but if it is a co-owner then compute housing property income as one holder owning property( only one holder can clain interest).
CA PARAS BAFNA
(Practising CA )
(33423 Points)
Replied 07 November 2011
It's good that some one is meeting the obligation.
What will happen if both X & Y do not make payment of EMI, throughout the FY?
In that situation, interest liability did not stop from accruing.
Such Accrued Interest can be claimed by the borrowers on accrual basis.
Both the borrowers can claim interest U/s 24 proportionately irrespective of the fact that none of them have paid a single paisa.
As such , who makes the payment ... can be treated as borrowers' internal arrangement. The liability is a joint as well as severe liability.
In the case of failure to pay, proportionate claim is tenable on the borrowers. The lenders will not ascertain as- "who has paid how much ?"
They have to give and take mutually the shortage and excess of their co-venture.
The view of Nitesh can be considered as Neeti-Sammat (Correct).
CA Mangesh Chitale
(B. Com. A.C.A. DISA (ICAI) DIRM (ICAI))
(245 Points)
Replied 07 November 2011
The deduction is available on payment basis. Person who is repaying loan is eligible to get deduction. Deduction upto Rs. 150000 (in case of SOP) is available to each assessee. i.e. upto Rs. 300000 as there are two separate individual borrowers.
CA Hardik Bunha
(self)
(2121 Points)
Replied 07 November 2011
Hey Friends,
Mr. Paras Bafana & Mr. nitesh gupta,
U r little far from this point let i clear ur point.
particulars co-owner( self-occupied) co-owner (LET OUT)
Rent N/A 500,000
Less : M.Value N/A (10,000)
Gross Rent N/A 490,000
Less S.Deduction N/A (14,7000)
Less Interest u/s 24(b) (150,000) (200,000)
Net Income (150,000) 143,000
SEE GUYS HERE A LITTLE POINT IN THE CASE OF SELF OCCUPIED RS. 1,50, 000 WILL BE distributed between two co-owner(AS THE OPTION IS AVAILABLE IF X PAYS 80,000 AND Y PAYS 70,000). BUT IN THE CASE OF LET OUT RS. 1,43000 WILL BE ALLOCATED BETWEEN CO-OWNERS(Option not available)
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