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Query on Income tax

rajeshkn (CEO) (66 Points)

01 March 2009

Dear Sir / Madam,

Me & my wife have jointly taken a housing loan & have been showing the 1.5 lakh allowable housing loan interest on both our incomes.

In the same on my income, I show a deduction of 1.50 lakhs & she shows a deduction of 1.50 lakhs on her gross income. Saying that, the cumulative interest paid to the bank is above 3.0 lakhs.

We have been doing this for the last 2 years as advised by our auditor BUt suddenly this doubt of whether both of us can show this deduction was raised by a banker, whom we had approached for a home loan take over.

Can someone clarify the law, pls.

Regards,

Rajesh

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4 Replies

Abhinav Agarwal (M.Com C.A SAP Consultant) (814 Points)
Replied 02 March 2009

Sir,

If you have taken Home Loan in Joint Name and the proportion if loan if 50:50, then you would have submitted Form 12C with Income Tax Department, either personally or thru bank. This form clearly states the proportion of deduction you & your wife will claim u/s 24 & 80C.

Thus if this is the case, you both can claim deduction under above sections.

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CA. Ashok shah (CHARTERED ACCOUNTANT) (333 Points)
Replied 02 March 2009

Yes, if the House Property (SOP) is owned by more than one person, all co-owners can claim interest u/s.24 (b) in respect of their share of interest payable on joint home loan taken by them subject to limit of Rs.150000/- for each co-owner.

CA Chintan Parikh (Practice) (290 Points)
Replied 02 March 2009

Originally posted by :Abhinav Agarwal
"	Sir, If you have taken Home Loan in Joint Name and the proportion if loan if 50:50, then you would have submitted Form 12C with Income Tax Department, either personally or thru bank. This form clearly states the proportion of deduction you & your wife will claim u/s 24 & 80C. Thus if this is the case, you both can claim deduction under above sections.	"