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Loss on house property- self occupied

04 November 2011

My husband and I have jointly taken a home loan. He pays 75 percent of the EMI. What will be our individual tax benefits? Total interest payble for the year will be 10 lkah. Can both of us are eligbile to ge the tax beenfit of 1.5 lakh

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16 Replies

CA Sripal Jain (Associate Finance) (709 Points)
Replied 04 November 2011

YES BOTH ARE ELIGIBLE FOR INTEREST OF 1.5 LAKH

AS PER SECTION 26 ,WHERE PROPERTY IS OCCUPIED BY CO OWNERS,THEN EACH OF THE CO OWNER IS ENTITLED TO DEDUCTION OF INTEREST OF RS 150000 OR 30000 AS IN THE CASE OF SELF OCCUPIED

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CA Sripal Jain (Associate Finance) (709 Points)
Replied 04 November 2011

ALSO ONE IS ELIGIBLE FOR HOUSING LOAN REPAYMENT UNDER SECTION 80 C REGARDING THE REPAYMENT OF LOAN

Benny Thadathil (CDM) (317 Points)
Replied 04 November 2011

Thanks a lot!

However the FAQ in income tax web site says differently, whcih is confused me.

94. My spouse and I are joint owners of a house constructed by availing housing loan separately. Are we both individually/separately entitled for deduction of the maximum interest payable of Rs.1.5 lakh?

No. The net taxable income from the property must be calculated first and then apportioned between the co-owners. In this process of calculation maximum interest payable of Rs.1.5 lakh can be considered only once.

CA Sripal Jain (Associate Finance) (709 Points)
Replied 04 November 2011

what is this ,im not able to understand the net taxable income wil be arrived after taking into account interest...wait for others opinion on this issue,as per act u cn avail it..

CA Sripal Jain (Associate Finance) (709 Points)
Replied 04 November 2011

hey the income tax website speaks about LET OUT PROPERTY, and im speaking about self occupied property....therefore if your property is self occupied eacho of them are eligible

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Surendra Agarwal (MANAGER FINANCE AND BUSINESS PLANNIN) (289 Points)
Replied 04 November 2011

If share of all co-oweners are definate in house property as well as in loan than as per section 26 of income tax act all co oweners are eligible for relief under this act. . Regards CS CA(FINAL) surendra agarwal

Vikas (Chartered Accountant) (162 Points)
Replied 05 November 2011

Agree with surendra. Share of co owner should be identyfiable and definite. Each co owner can claim deduction of interest of Rs. 150000 or 30000, if it is self occupied.

Goyel P. Lotliker (Tax Consultants) (60 Points)
Replied 16 November 2011

Ok, if the housing loan interest is 2,00,000/- than how will it be shared between Husband & Wife while computation of Income from Self occupied house Property?

Gajanana Pai (CA Final Student) (38 Points)
Replied 16 November 2011

Yes U/s 26 of the I.T Act 1961,both are liable for claiming Interest on Self Occupied Property on Self Occupied .

Goyel P. Lotliker (Tax Consultants) (60 Points)
Replied 16 November 2011

But out of 2,00,000/- how much will each get?

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Hemanth Sai (CA-FINAL,AUDIT TRAINEE) (110 Points)
Replied 16 November 2011

the deduction of Rs.1,50,000 interest will be availed by the co-owners as per thier ratio of share in the loan. amt.

Vikas (Chartered Accountant) (162 Points)
Replied 17 November 2011

Both can claim interest deduction in their sharing ratio upto maximum of 150000/- each.

Hemanth Sai (CA-FINAL,AUDIT TRAINEE) (110 Points)
Replied 17 November 2011

can they claim 1,50,000 each Vikas sir???

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Vikas (Chartered Accountant) (162 Points)
Replied 17 November 2011

yes, but in their ratio. suppose interest is 3 lacks and ratio is 50-50 then both can claim 150000 each. but if ratio is 75-25 then the one with 75 percent share can claim 150000/- and other with 25 percent share can claim 25*300000=75000.

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