Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Housing Loan interest

R.Suresh (Sr. Executive) (394 Points)

16 June 2009

Hi to all,

In my office one of the employee claiming Housing loan interest as a deduction under the head House property.

But the housing loan is taken by joint that means (Husband & Wife) both name loan in bank in this my doubt is

The employee saying that we both are claiming dedcution from housing and we both are elible for Rs 1,50,000/- (each) for a interest on loan

Kindly explain me, this is the first time i am attainding this type of cases.

This loan is taken by both name joint loan.

If possible give me a spacifications & case laws also

Thanks for advance, giving reply.

Reply
Follow
Share

11 Replies

PRAVEEN KUMAR (MBA (Finance) B.Com.(P)) (3443 Points)
Replied 16 June 2009

Both can claim the benefit upto Rs. 150,000 separately. So if the interest is charged on your loan amount is 250000, both can claim 125000 each.

Upgrade to CAclubindia Pro. Subscribe Now!

R.Suresh (Sr. Executive) (394 Points)
Replied 16 June 2009

Hi Praveen,

Thanks for your information, and i need notes on that, can you provide me or tell me were saying that regarding joint loan in the Act or any related book. becuase my boss want the notes on that.

Kindly help me.

Ajeet (CA) (239 Points)
Replied 16 June 2009

Yes, I am agreed with praveen. Both Husband & Wife ca claim deduction for interest up to 1,50,000 each.

R.Suresh (Sr. Executive) (394 Points)
Replied 16 June 2009

Hi All,

Thanks for your information, and i need notes on that, can you provide me or tell me were saying that regarding joint loan in the Act or any related book. becuase my boss want the notes on that.

Kindly help me.

PRAVEEN KUMAR (MBA (Finance) B.Com.(P)) (3443 Points)
Replied 16 June 2009

Basically, the deduction u/s 24 is allowed to all the assessees. i.e. in this case wife & husband. wife & husband can claim Rs. 1.50 Lakhs each u/s 24.

The deduction for Repayment of Housing Loan and Interest thereon may be claimed by the person who has the obligation to pay the loan and in turn actually repays the loan.

when wife is co-owner of the flat it means both have taken the loan and both are liable to pay it & in other words both can claim IT Deduction.

if any case law is exist i will let you know if found.

Thanks

Praveen

Upgrade to CAclubindia Pro. Subscribe Now!

RAVI JAIN (Accounts Manager) (80 Points)
Replied 16 June 2009

UNLESS THE PROPERTY AND THE LOAN BOTH ARE IN THE NAME OF HUSBAND AND WIFE, BOTH CANNOT CLAIM THE BENEFIT.
ONLY THE HUSBAND IN THIS CASE CAN CLAIM THE BENEFIT.

PRAVEEN KUMAR (MBA (Finance) B.Com.(P)) (3443 Points)
Replied 16 June 2009

yes dear,

Property & Loan both should be in joint name of husband and wife to claim it dedn.

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 16 June 2009

Yes co owners of the property can claim interest and principal of their shares of the total loan repaid during the year.

Smitha (CA Final) (29 Points)
Replied 17 June 2009

Originally posted by :R.Suresh

Suresh,

There are no case laws relating to the query asked by you...Going by the act in case of joint ownership any one of the owner can claim for the entire benefit of Rs.150000... or both together can claim Rs.150000 in the share they wish to claim....but both claiming 150000 each is not allowed as per the act....

Hi to all,
In my office one of the employee claiming Housing loan interest as a deduction under the head House property.
But the housing loan is taken by joint that means (Husband & Wife) both name loan in bank in this my doubt is
The employee saying that we both are claiming dedcution from housing and we both are elible for Rs 1,50,000/- (each) for a interest on loan
Kindly explain me, this is the first time i am attainding this type of cases.
This loan is taken by both name joint loan.
If possible give me a spacifications & case laws also
Thanks for advance, giving reply.

tejas (student) (34 Points)
Replied 17 June 2009

Originally posted by :Smitha
"	Both loan & property should be in the name of the wife & husband in order to claim a deduction of 150000 each Originally posted by :R.Suresh " Suresh, There are no case laws relating to the query asked by you...both can claim deduction of 150000 each as per the act.... Hi to all, In my office one of the employee claiming Housing loan interest as a deduction under the head House property. But the housing loan is taken by joint that means (Husband & Wife) both name loan in bank in this my doubt is The employee saying that we both are claiming dedcution from housing and we both are elible for Rs 1,50,000/- (each) for a interest on loan Kindly explain me, this is the first time i am attainding this type of cases. This loan is taken by both name joint loan. If possible give me a spacifications & case laws also Thanks for advance, giving reply. "	"

Upgrade to CAclubindia Pro. Subscribe Now!

Vignesh S (Article) (67 Points)
Replied 17 June 2009

Originally posted by :Smitha

Hi Smitha,

Both the co owners are eligible to claim a deduction Rs 150,000 each in respect of the interest amount on loan borrowed.

Originally posted by :R.Suresh

"

Suresh,
There are no case laws relating to the query asked by you...Going by the act in case of joint ownership any one of the owner can claim for the entire benefit of Rs.150000... or both together can claim Rs.150000 in the share they wish to claim....but both claiming 150000 each is not allowed as per the act....

Hi to all,
In my office one of the employee claiming Housing loan interest as a deduction under the head House property.
But the housing loan is taken by joint that means (Husband & Wife) both name loan in bank in this my doubt is
The employee saying that we both are claiming dedcution from housing and we both are elible for Rs 1,50,000/- (each) for a interest on loan
Kindly explain me, this is the first time i am attainding this type of cases.
This loan is taken by both name joint loan.
If possible give me a spacifications & case laws also
Thanks for advance, giving reply.

"