Hai all
One of my staff pays interest on a Joint Housing Loan with Her Husband Rs.400,000/-pa. As per rule Only 200,000 Can be claimed. She has ownership of 50% in the property also. My querry is Whether she can claim 2,00,000 and her husband can claim Rs.200,000/-or Both of them can only Rs.1,00,000/- each.Income tax department on a spot verification of tax declaration, directed us to allow claim on ownership basis only
Agree with Kiresh
In cases where the house is owned by more than one person and is also self-occupied by each co-owner, each co-owner shall be entitled to the deduction individually on account of interest on borrowed money up to a maximum amount of Rs. 2 lakh (Rs. 1.50 Lakh up to A.Y. 2014-15). If the house is given on rent, there is no restriction on this amount. Both co-owners can claim deductions in the ratio of ownership.
thank U v much!!!
CAclubindia
