Parmod Agarwal (Assistant Manager) (394 Points)
18 February 2010Dear All,
Our Some employees furnished us Housing loan Interest and Principal amount payment certiicate from the Bank. In this certificate Houseloan are sanctioned in the two names : 1. Name of the employees 2. His wife . But the House
registry in the name of wife. Can employee claim the deduction of HOusing loan Interest and Principal?
Plz. Urgent Reply.
Thanks
Parmod
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 18 February 2010
It is very advantageous to buy a property in joint name as each individual has the right to claim tax benefits. So if a property is owned by husband and wife together then both are entitles to claim deductions individually.
There is no rule as to the number of co-owners or who the co-owner is (brother, spouse or parents).
Following are the points to consider:
• The house should be bought in the joint name and care should be taken to keep the proof of co-ownership.
• The housing loan should be taken in joint names.
Repayment
The repayment of the loan should be done individually or from their joint bank account. The funds in the account should be contributed by the co-owners in proportion to their ownership/loan. Co-owners should have their independent sources of income from which the loans are re-paid.
Tax benefits are available in proportion to the joint ownership and the loan taken by the co-owners
Amir
(Learner)
(4016 Points)
Replied 18 February 2010
Dear Pramod,
U have to check the applicability of clubbing provision & I think in this case Poperty will be clubbed since Husband is making payment of the loan & therefore deduction will be allowed..............
C.Balaji
(Learner)
(1867 Points)
Replied 19 February 2010
Mr. Amir brother....
i have a query.... how can we allow ded. simply because housing loan sanctioned on the name of husband????
Wife is the owner right??? How can a person other than the owner claim ded?
how clubbing provisions applicable here???
Please clarify me....
Parmod Agarwal
(Assistant Manager)
(394 Points)
Replied 19 February 2010
Dear All,
As per Income TAx ACt, Owner of the house property means not only the legal owner i.e. the person in whose name the property stands, but also :
The person who has transferred the property without adequate consideration to his/her spouse (otherwise than in connection with an agreement to live apart) or to a minor child, not being a married daughter. in this context judical rulings:
Following the decision of the Apex Court in the case of CIT v. Poddar Cement(P) ltd(1997) 226 ITR 625(SC) , Iy must be held that for the purpose of this section , owner is a person who is entittled to receive income from property in his own right and the requirement of registration of sale deed under
the idian registration Act,1908 in the context o section is not warranted-R J wood v CIT(2002) 121n Taxman 476 (Delhi).
In this ruling /Judgement I think husband can claim the deduction if the property stand in the name of wife.
Other views in the context is also welcome.
Please clarify.
Thanks
Parmod
Amir
(Learner)
(4016 Points)
Replied 19 February 2010
Dear Balaji,
In the present case Sec 27 cannot be attracted since Husband has not tranfered the Property fact the property in itself was purchased in the name of wife........
But thw above arrangement gets covered by Sec 64 where the tranferred asset need not to be in the same form- like Husband has given money to his wife & wife has obtained property out of that money, now this property will be clubbed u/s 64.
Further,
Interest on borrowals invested in properties owned by wife/minor children is deductible - Where the assessee had borrowed money at interest to purchase certain house property in the names of his wife and minor children and the income from that property was included in the assessee’s total income under the provisions of section 64(1)(iv) and (v), it was held that the assessee’s claim for deduction of interest on borrowed money under section 24, read with section 27(1), could not be rejected on the ground that the borrowing had been effected, not in the name of the assessee’s wife or minor children, but in his own name - S.M.A. Siddique v. CIT [1984] 148 ITR 307 (Mad.).
Yash Patil
(Sr.Accountant)
(22 Points)
Replied 26 February 2010
Hi, I am working in pvt. firm i want to know How should I Calculate my income tax? & how i should know the how much investment i should do for the income tax exemption
C.Balaji
(Learner)
(1867 Points)
Replied 26 February 2010
Dear Yash.....
Please mention your Income details and other details..........
Yash Patil
(Sr.Accountant)
(22 Points)
Replied 26 February 2010
Hi, I am working in pvt. firm i want to know How should I Calculate my income tax? & how i should know the how much investment i should do for the income tax exemption Gross Total Sal 2,64450/- (Annual)( Basic 128625/-, HRA-64125/-, Travel-9600/- Other 62100/-) PT 2500/- 80C-6676/-
ALPESH KUMAR
(SUPRITENDENT)
(140 Points)
Replied 28 February 2010
| Originally posted by : Yash Patil | ||
 |
Hi, I am working in pvt. firm i want to know How should I Calculate my income tax? & how i should know the how much investment i should do for the income tax exemption |
 |
u can claim max. Rs. 1 lac as investments which are eligible for deduction u/s. 80C.
u can also claim mediclaim insurance u/s. 80D for you and yr family upto Rs. 15000/-
Above invesments will be deducted from your salary income. and on balance u have to calculate at the rates applicable as per income slab. i.e. if ur income is Rs. 290000 and having investment of Rs. 1 lac u/s. 80C and Rs. 10000/- mediclaim. Then ur taxable income will be 290000-110000=180000/- and ur tax will be Rs. 2000/- i.e. 10 % of 20000/- (180000-160000( being a taxable limit))
hope above will clarify ur problem.
ALPESH KUMAR
(SUPRITENDENT)
(140 Points)
Replied 28 February 2010
| Originally posted by : Yash Patil | ||
|
|
Hi, I am working in pvt. firm i want to know How should I Calculate my income tax? & how i should know the how much investment i should do for the income tax exemption Gross Total Sal 2,64450/- (Annual)( Basic 128625/-, HRA-64125/-, Travel-9600/- Other 62100/-) PT 2500/- 80C-6676/- |
|
Salary Rs. 264450/-
Less: Transport Allown Rs. 9600/
PT Rs. 2500/-
80C Investment Rs. 6676/-
___________
Rs. 245674/-
Your tax will be 8567/- (245674-160000=85674 and 10% of it)
plues educatation cess 3% on 8567 will be ur total tax.
u can invest upto Rs. 1 lac u/s. 80C to avoid any tax.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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