Tax benefit claim on joint housing loan

Dear Members,

This is in regard to claim of  tax exemption on hosuing loan in joint names. I and my wife are co-owners of a property and it was financed through housing loan from HFC. We both are salary income assessees and would like to avail the tax benefit in equal propotion from our respective employers. How should we go to claim the benefit of tax as the HFC  is issued total tax exemption certificate duly mentioned both of the names. 

Secondly as far as concerned the EMI Payment which is deducting the full amount  from  the bank account  of one of the borrower for the whole year. Is it necessarry to make the payment of EMI from the co borrower's bank account itself to claim the tax exemption in his/hers tax account. In practicality the bank take ECS mandate from one  bank account only even in the case of joint borrowers. Kindly advise how to tackle the issue with respective employers as they are objecting to consider for the equal amount in both the account.

In addition to the above information, the co-borrower transfer/deposit a fixed sum of rupees ( not exact equal amount of EMI, more than that)  in the bank account of other borrower in every month. Please advise on the issue.

Thanks

RKP Nair 

 

Replies (2)

In your case you and your wife own the house Jointly, have taken loan in joint name and contribute to the loan jointly by transferring amount in other's bnk (Though amt is paid by ECS from one a/c only).

This should be adequate to claim housing loan tax benefits equally (or in whichever proportion the contribution is made). A letter can be made by each one of you showing the breakup of tax benefits you want to claim and submitted to the employers.

If he does not allow and deduct TDS, you can still claim refund by filling salary return and showing equal claim for deductions.

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