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Discussion > Income Tax > Tax queries >

Housing loan interest exemption limit

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Accountant


[ Scorecard : 31]
Posted On 17 February 2012 at 15:37 Report Abuse

If housing loan installment of a single property (owned by husband and wife jointly) paid by husband and wife both and Loan interest is more than 150000/-. How much interest is eligible for deduction for  each of them? i mean if the interest is 154000/- then both husband and wife can claim 77000/- or 50% of the max. limit i. e. 75000/- in their individual return?


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Phalgun
CA FINAL(May 2014) ARTICLED STUDENT


[ Scorecard : 327]
Posted On 17 February 2012 at 16:57

If the property is SOP then amount of deduction will be restricted to 150000(each eligible for rs.75000) otherwise if it is let out then Rs.77500/- each.

 



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Sindhuja
Final Student


[ Scorecard : 103]
Posted On 17 February 2012 at 17:29

The person, who is repaying the loan, is eligible to claim the interst u/s.24b & principal u/s. 80C.

If the EMI is paid from the joint account of husband & wife, both can individually claim interest upto a maximum of 1,50,000(self occupied property).

Remember that loan should also be in the name of both.



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valji
Accounts manager-MBA


[ Scorecard : 2114]
Posted On 17 February 2012 at 18:12

AGREE WITH SINDHUJA



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satish kumar voleti
A.C.A., (ICWAI)


[ Scorecard : 1661]
Posted On 18 February 2012 at 07:52

INTEREST ON BORROWED LOAN(U/S.24(b)):

FOR SELF OCCUPIED PROPERTY

a.   If Property is acquired or constructed with loan taken after 01/04/99 and construction is completed within 3 years from the end of the financial year in which the capital was borrowed – Rs.1,50,000 or actual interest paid/payable whichever is less is deductible.

b.   If new housing loan is taken for repayment of old loan (old loan taken after 1/4/99) – Rs.1,50,000 or actual interest paid/payable whichever is less is allowed as deduction.

c.   If Property is acquired or constructed with loan taken before 01/04/99, Rs.30,000 or actual interest paid/payable whichever is less is allowed as deduction.

d.   If loan taken for Repairs, renewal, reconstruction of property, Rs.30,000 or actual interest paid/payable which ever is less is allowed as deduction.
FOR LET OUT PROPERTY, actual interest paid/payable can be claimed as deduction.

 
Deduction u/s 80C repayment of principal
Home Loan Principal Repayment: The Equated Monthly Installment (EMI) that you pay every month to repay your home loan consists of two components – Principal and Interest.The principal component of the EMI qualifies for deduction under Sec 80C. Even the interest component can save you significant income tax – but that would be under Section 24 of the Income Tax Act. Please read “Income Tax (IT) Benefits of a Home Loan / Housing Loan / Mortgage”, which presents a full analysis of how you can save income tax through a home loan.
 
 
 

The person, who is repaying the loan, is eligible to claim the interst u/s.24b & principal u/s. 80C.

If the EMI is paid from the joint account of husband & wife, both can individually claim interest upto a maximum of 1,50,000(self occupied property). And subjected to repayment of interest amount in case of Let out property....................if the loan taken is joint then both of them can claim exemption..............

 
 


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Nagam saisameer
CA FINAL


[ Scorecard : 169]
Posted On 19 February 2012 at 11:48

I learned the point from this post, but i required a strong base to have  more confirmation.




Rup Kumar
finance manager


[ Scorecard : 206]
Posted On 20 February 2012 at 19:47

Individual limit is Rs. 1,50,000.

 

 



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sum
af


[ Scorecard : 33]
Posted On 21 February 2012 at 00:39

What if the property is owned by one person and loan is joint>?

 




Vipan Kumar
Chief Accounts officer


[ Scorecard : 55]
Posted On 21 February 2012 at 21:49

Sir,

I know that deduction u/s 80-C is available on the principal repayment of housing loan, but, i don't know that whether the loan must be on the name of payee or not  i.e. whether borrower of loan & payer of loan can be different and then payer can claim the deduction, if borrower is not claiming any type of deduction. Please reply.

 




priti karawa
artical


[ Scorecard : 88]
Posted On 22 February 2012 at 17:07

No,

Only the Borrower can claim the Deduction u/s 80C and in House Property Head.



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