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Income tax

19 May 2014

Dear Sir

My son in law and daughter bought a flat in their name for Rs 37 lakhs.in the year 2011.Presently EMI is paid by my son in law.Now my daughter is also earning and would like to give some money.My son in law is filing ITR2.Pl guide me how to split the interest and the principal between the two

thanks in adv.

Dwarakanath

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Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 19 May 2014

if flat is in name of both than both are eligible for claim u/s 24 b for interest on loan and u/s 80C for principal repayment

subject to that EMI should go from bank account of both owner however if initially EMI deduct from husband account and after that wife transfer half of EMI funds to husband bank account than it would be sufficient.