6) Dear Sirs ,
Suppose a House Property is Co-owned (50%-50%) by husband & wife
and such House Property is ‘Let-out’ , i.e., given on rent.
And if the ‘INTEREST’ on Housing Loan –Rs.3,60,000 is paid entirlely (100%) by husband, during the current year , then should the Housing Loan Interest u/section 24 be
A) claimed by Husband fully as 3,60,000
or
B) claimed by Husband as Rs.1,80,000 and Wife as Rs.1,80,000
Kindly reply at the earliest
Thank you
It can be fully claimed by husband.
According to me, when the interest is being paid by the one co-owner, it is presumable that the same is being paid by him for his share of loan taken.
How can other other co-owner get benefit of 50% in interest amount ?
Different assesses, both having own share in the property.
According to me, the co-owner paying the interest shall get the deduction, in this case, Rs. 360,000 to the husband.(Subject to limit of Rs. 150,000 in case of self occupied)
Let us divide the problem into two parts
1. Firstly the Property is a let out property- There is no limit on the Interest amount that can be claimed.
Had the property been owned by a single owner, he could have easily claimed Rs. 360000/- as interest.
2.However in the given case, since the property is co owned , husband and wife will claim interest in the proportion to their co-ownership in the property Ie. 180000/- each by both husband and wife.
I woukd like to differ from your answer.
In case the Property is Self occupied both husband and wife shall be allowed a deduction of Rs. 1.5 Lacs each.
CAclubindia
