Housing loan rapayment (Income Tax)

This query is : Resolved

Author : Anonymous

( Author )
28 July 2012

I and my wife have borrowed a home loan, We are co owner and co borrower but i am paying the entire home loan installment.

Will i get tax benefit of Rs 150000 and Rs 100000 u/s 80 c or Am i get only half of the benefit?

CMA Ramesh Krishnan

( Expert )
28 July 2012

Yes, if your wife is also working and has a separate source of income and filing returns, both of you can claim separate deductions in your income tax returns.The repayment of principal amount of the loan can be claimed as a deduction under section 80C up to a maximum amount of Rs.1 lakh individually by each co-owner. since the both are eligible to claim, so no restriction on your claim for 80C & Sec.24b
In cases where the house is owned by more than one person and is also self-occupied by each co-owner, each co-owner shall be entitled to the deduction individually on account of interest on borrowed money up to a maximum amount of Rs. 1.5 lakh. If the house is given on rent, there is no restriction on this amount. Both co-owners can claim deductions in the ratio of ownership if the ratio of ownership is mentioned,otherwise 50:50 ratio

Author : Anonymous

( Author )
28 July 2012

Thanks for the reply sir but My wife is housewife and she does not have any source of income and entire EMI is paid by me?

CMA Ramesh Krishnan

( Expert )
28 July 2012

As a co owner & joint applicant of loan, you are eligible to claim the deductions u/s.80C max Rs.1 lakh & 24b Max Rs.1.50 lakh

CFA Bharath Kumar

( Expert )
28 July 2012

yes. you can claim half of interst on h loan under sec 24b and half of repayment of loan u/s 80c

Author : Anonymous

( Author )
28 July 2012

But Mr.Bharat Kumar Ji, I am paying the entire EMI from my income only and my wife is not paying anything, So why i shouldn't get the entire tax benefit of Interst and Repayment of Principal?

CFA Bharath Kumar

( Expert )
28 July 2012

so yo can eligible for u/s 24b upto Interst 1.5 lakh and In 80c you can eligible upto 1 lakh(but total 1lakh limit in 80c)

CMA Ramesh Krishnan

( Expert )
28 July 2012

Hi
On computing Income from house property under co ownership u/s.26. each owner individually entitled to the relief provided
so as per interest u/s.24(b) you are eligible deduction Rs.1.50 lakh maximum subject to actual. as per section 80C there is no such class, but total principal paid from your taxable income, hence you are eligible to claim the 80C deduction also Rs.1 lakh maximum.