This is the scenario of an as see
The house is in husband's name(100 %). Loan was taken by both husband and wife. During IT calculation husband wants to take the benefit of interest paid and wife takes the benefit of principle amount so that both of them wants to show NIL TAX?
I told them it is not possible and the law does not allow this.
But they said they have done like this with the previous years with their previous employers.
a)Is it correct?
b)If not what will happen to the previous years returns?
c) How will the dept know the property owner and who claimed the benefits?
Answers in order: -
a) No doing that is not correct. Either they have to claim in ratio of property holdings or their contribution of the EMI. But the bifurcation has to be done for Principal "AND" Interest.
b) They have escaped assessment till now, mostly because processing has happened through CPC and not by an officer. Once, caught all old AYs can be opened.
c) The Dept. can cross check this from the banker where the assessee's PAN or Aadhar has been linked.
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