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Housing loan interest exemption limit


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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CA FINAL(May 2014) ARTICLED STUDENT

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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Final Student


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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Accounts manager-MBA


AGREE WITH SINDHUJA


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

 
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finance manager


Individual limit is Rs. 1,50,000.

 

 


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

 

 
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Chief Accounts officer


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.

 

 
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No,

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

 
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