If housing loan installment of a single property (owned by husband and wife jointly) paid by husband and wife both and Loan interest is more than 150000/-. How much interest is eligible for deduction for each of them? i mean if the interest is 154000/- then both husband and wife can claim 77000/- or 50% of the max. limit i. e. 75000/- in their individual return?
18 Replies
Phalgun
(Audit Manager)
(327 Points)
Replied 17 February 2012
If the property is SOP then amount of deduction will be restricted to 150000(each eligible for rs.75000) otherwise if it is let out then Rs.77500/- each.
Sindhuja
(Final Student)
(113 Points)
Replied 17 February 2012
The person, who is repaying the loan, is eligible to claim the interst u/s.24b & principal u/s. 80C.
If the EMI is paid from the joint account of husband & wife, both can individually claim interest upto a maximum of 1,50,000(self occupied property).
Remember that loan should also be in the name of both.
satish kumar voleti
(A.C.A., (ICWAI))
(1686 Points)
Replied 18 February 2012
INTEREST ON BORROWED LOAN(U/S.24(b)):
FOR SELF OCCUPIED PROPERTY
a. If Property is acquired or constructed with loan taken after 01/04/99 and construction is completed within 3 years from the end of the financial year in which the capital was borrowed – Rs.1,50,000 or actual interest paid/payable whichever is less is deductible.
b. If new housing loan is taken for repayment of old loan (old loan taken after 1/4/99) – Rs.1,50,000 or actual interest paid/payable whichever is less is allowed as deduction.
c. If Property is acquired or constructed with loan taken before 01/04/99, Rs.30,000 or actual interest paid/payable whichever is less is allowed as deduction.
d. If loan taken for Repairs, renewal, reconstruction of property, Rs.30,000 or actual interest paid/payable which ever is less is allowed as deduction.
b. If new housing loan is taken for repayment of old loan (old loan taken after 1/4/99) – Rs.1,50,000 or actual interest paid/payable whichever is less is allowed as deduction.
c. If Property is acquired or constructed with loan taken before 01/04/99, Rs.30,000 or actual interest paid/payable whichever is less is allowed as deduction.
d. If loan taken for Repairs, renewal, reconstruction of property, Rs.30,000 or actual interest paid/payable which ever is less is allowed as deduction.
FOR LET OUT PROPERTY, actual interest paid/payable can be claimed as deduction.
Nagam saisameer
(CA FINAL )
(170 Points)
Replied 19 February 2012
I learned the point from this post, but i required a strong base to have more confirmation.
sum
(af)
(33 Points)
Replied 21 February 2012
What if the property is owned by one person and loan is joint>?
Vipan Kumar
(Chief Accounts officer)
(55 Points)
Replied 21 February 2012
Sir,
I know that deduction u/s 80-C is available on the principal repayment of housing loan, but, i don't know that whether the loan must be on the name of payee or not i.e. whether borrower of loan & payer of loan can be different and then payer can claim the deduction, if borrower is not claiming any type of deduction. Please reply.
priti karawa
(artical)
(93 Points)
Replied 22 February 2012
No,
Only the Borrower can claim the Deduction u/s 80C and in House Property Head.
Ragesh M
(Proprietor : Allied Associates Thrissur Kerala India)
(50 Points)
Replied 24 February 2012
Housing Loan taken in the name of Husband by way of surrender salary certificate of wife whether wife can cliam deduction u/s 24b
priti karawa
(artical)
(93 Points)
Replied 24 February 2012
first......Who is the Owner of this Property...........
Second ......Who Pay The Installment Amount......
If Husband is owner & installment is Paying By wife.....than no one claim this deduction.....
RAGESH......
if you have any Quiry on this Comment than Ask Again.......i will Explain you.............with Example.
Ranjana Pant
(Article)
(26 Points)
Replied 08 June 2012
As per the provisions of Income Tax Act 1961, a deduction of up to Rs. 150,000 can be claimed as tax exemption on housing loan. This deduction is claimed towards the total interest that we pay on the home loan towards purchase or construction of house property while computing the income from house property. The interest payable before you acquire home or start the construction work would be deductible in five equal annual instalments commencing from the year in which the house has been acquired or constructed.
In case of self- occupied property, housing loan tax benefit is allowed only for one such self – occupied property. The interest towards home loan taken for purchase, construction, repairs, renewal or reconstruction of house property is eligible for deduction under section 24(b).
Principal Repayment of Housing loan
An individual can avail deduction on the principal loan repayment u/s 80 C (Max Limit Rs. 1 lakh) subject to fulfilment of prescribed conditions.
Let us consider an example:
Your taxable income is 5,50,000. Principal Repayment for the same year: 1,20,000 and interest payable is 1,70,000.
Total deduction allowed is 2,50,000 (Rs. 1,50,000 towards interest paid on housing loan and Rs.100,000 on principal repayment)
Total Taxable income is Rs. 300,000 (Rs. 550,000 – Rs. 250,000)
Ranjana Pant
(Article)
(26 Points)
Replied 08 June 2012
Tax exemptions on housing loans will be available only to the person on whose name the property is registered irrespective of the fact who pays for the loan. In case the property is jointly held then the exemption can be availed in proportion to the EMI paid. 
Ashish
(AGM)
(26 Points)
Replied 05 July 2012
Hi, I stay in Mumbai. I have recently purchased my first flat (in October 2011) in Mumbai with a loan amount of Rs 64 lakh. The flat is jointly owned by my wife and me, although the sale deed does not mention the proportion of the ownership. The loan is a joint loan with my wife and is paid through my salary account which again is a joint account with my wife where my wife contributes Rs 25000 every month through ECS. The lending bank is the same as the bank where I have a salary account. I am myself staying in the flat in Mumbai provided by my company. I have given my purchased flat on 11 months lease for a monthly rent of Rs 31,000, with effect from May 2012, which again is credited electronically to my salary account. My wife has been claiming HRA from her employer till now. I have got a provisional interest certificate from my bank advising that for 2012-13, the Principal component of my loan is Rs 1,036,53 and Interest component is Rs 6,63,099. Now I need to submit to my employer my proposed investments for 2012-13 for the tax purpose. Can my wife and me both claim tax deductions Section 24(b) of the Income Tax Act for the whole amount of the interest component (50% each and not restricted to Rs 1,50,000 each since the flat has been given out on rent) net of the income from housing (as 50% of the rent received for each of us)? Further, can my wife continue to claim deductions under HRA?
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