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Tax benefit araising out of housing loan

Raj Prakash (Accounts) (144 Points)

04 June 2016

Dear Expert,

One of my friend is working in an MNC, and his spouse is working in govt dept, his income slab reaches 20% (salary income excl. all other 80 C deduction like PF etc) and his spouse salary is below taxable limit. He wishes to go for a home loan, he want to get home loan by incl. his wife salary, but he want to enjoy all tax benefit arising out of it, because his wife salary is less than the taxable income. Is there any way to do so?.

Expecting your reply.

With regards

Rajprakash

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6 Replies

Anshul Mittal (Freelancing) (741 Points)
Replied 04 June 2016

i will explain it a bit-

Your friend can take housing loan along with his spouse, taking her as co-borrower, the benefit of having co-borrower is that you'll get higher amount of Loan and the benefit of Interest and Principal amount will be Proportionate.

The max limit of deductions available are Rs. 200,000 for the interest on loan and Rs. 150,000 for the principal.

Now the working of proportion will be-- If loan is given on Income in ratio of 70:30, then the tax benefit will be divided in the same ratio.

I Hope it will be helpful.

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Raj Prakash (Accounts) (144 Points)
Replied 04 June 2016

Dear Sir,

Thanks for your reply,

Further to this my query is, if my friends wants purchase house in his wife name & his sons name and not in his name, whether he can get income tax benefit?

Request your reply in this.

Regards

Rajprakash

Raj Prakash (Accounts) (144 Points)
Replied 06 June 2016

Dear Sir,

Thanks for your reply,

Further to this my query is, if my friends wants purchase house in his wife name & his sons name and not in his name, whether he can get income tax benefit?

Request your reply in this.

Regards

Rajprakash

Anshul Mittal (Freelancing) (741 Points)
Replied 06 June 2016

Sir, as long as it is House loan and you are a borrower or co-borrower, you can share the benefits of such house loan,

as far as Name on Hosue is concered, i don't think income tax dept. will have issue on that(However, if such case comes in scrutiny, you'll have to show that the loan was taken on your name even if the house is in spouse or his children name, and few more arguments).

So YES even if the house is on the name of your Friend's spouse and son's name, he can enjoy the benefits of House Loan.

(If i find something else on this regard, i'll post it ASAP)

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