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internet on housing loan

vinay (llb) (85 Points)

30 August 2018

can interest paid on housings loan be devided into co-applicants when loan was made in joint name?

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First-time homebuyers can claim deduction under section 80EE for interest paid on home loan up to maximum Rs 50,000 per financial year until the loan is fully repaid. However, under Section 24, home buyers can claim deduction of up to Rs 2 lakh on their home loan interest if the property is self-occupied or vacant.

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Sarath Chandra (CA Final Student) (566 Points)
Replied 30 August 2018

Hi Vinay,
If the property is let-out, compute the income from such house property as if the property is owned by one owner and thereafter, the income so computed shall be apportioned amongst each co-owner as per their specific share u/s 26. This means the interest u/s 24(b) can be divided and apportioned between co-owners.
Here, you are talking about CO-APPLICANTS but not co-owners. If loan is taken by co-applicants and the property is in the name of one of the applicants, then the interest u/s 24(b) can be claimed only by such co-applicant who is a registered OWNER of the house property.

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