09 May 2012
Deductions from income from house property. 24. Income chargeable under the head “Income from house property” shall be computed after making the following deductions, namely:— (a) a sum equal to thirty per cent of the annual value; (b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital: Provided that in respect of property referred to in sub-section (2) of section 23, the amount of deduction shall not exceed thirty thousand rupees : Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed [within three years from the end of the financial year in which capital was borrowed], the amount of deduction under this clause shall not exceed one lakh fifty thousand rupees.
The section clearly specifies that the deduction of interest is in respect of house property and not in respect of assessee. Therefore according to me toal deduction of Rs. 1,50,000/- only can be claimed.
The deduction will be allowed to you and your wife as well.
To Claim the benefit, you will have to ensure that- - the Property is acquired jointly by both of you i.e you and your wife both should be owner of your respective shares. - the Home loan must be taken jointly by both of you.
Since, you and your wife are assessed differently and are allowed to claim the deduction from the income arising from your respective share.
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