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Claim deduction u/s 24(b) and hra

CA. sanjeet Kumar Ojha (Chartered Accountant) (272 Points)

24 July 2014

I am an employee of a MNC Company. There is a house in the name of my wife. That house is a self residential property. There is a housing loan and interest is being paid through my account. My wife has no income.

1Q - Can i claim the interest of RS 150000 u/s 24(b)

2Q - can i take the benefit of HRA

Thanks in advance

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5 Replies

CA. sanjeet Kumar Ojha (Chartered Accountant) (272 Points)
Replied 24 July 2014

One more clarification is that , Housing loan is in my name.

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 24 July 2014

Sanjeet,

from the facts that you have mentioned, you can get the deduction of home loan principle amount(max-1,00,000/-) & interest (1,50,000)

(only if construction has been completed & completion certificate has been obtained in case of loan taken for construction)

CA. sanjeet Kumar Ojha (Chartered Accountant) (272 Points)
Replied 24 July 2014

Originally posted by : saloni
	Sanjeet, from the facts that you have mentioned, you can get the deduction of home loan principle amount(max-1,00,000/-) & interest (1,50,000) (only if construction has been completed & completion certificate has been obtained in case of loan taken for construction)

Thanks for reply

Will there not be any problem that house is in my wife's name and not me.

Reply Please

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 24 July 2014

If you are only person repaying the loan,you can claim entire tax benefit for yourself provided you co-own the property.You should enter into a simple agreement with the other borrowers stating that you will be repaying the entire loan. If you are paying part of the EMI, you will get tax benefits in the proportion to your share in the loan.

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CA Suraj Lakhotia (IndigoLearn) (4898 Points)
Replied 24 July 2014

For Income under House Property (Loss in this case), you should be the owner/co-owner of the property. unless this condition is satisfied you will not be able to claim deduction of Interest u/s 24b or Principal under Section 80C.