Claim home loan interest as deduction
This query is : Open
27 December 2014
A property is on wife's name and home loan is on husband's name who can avail deduction u/s.24(b) and u/s.80c?
CA PARAS BAFNA
(Expert)
27 December 2014
First, decide who desires to claim the deductions ?
.
If husband has purchased the property in the name of his wife by paying the entire amount from his account/loan in his name, the income arising from such property is taxable in the hands of the husband under the head Income from House Property ( Section 64(1)(iv)). So, it can be said that he can claim interest as well as deduction U/s 80C.
.
If wife has paid certain amount towards purchasing the house and husband has helped her in arranging the finance, then she can show the loan amount as her liability by crediting his husband's account. In such a case she can claim Interest U/s 24(b) only.
.
.
If husband has purchased the property in the name of his wife by paying the entire amount from his account/loan in his name, the income arising from such property is taxable in the hands of the husband under the head Income from House Property ( Section 64(1)(iv)). So, it can be said that he can claim interest as well as deduction U/s 80C.
.
If wife has paid certain amount towards purchasing the house and husband has helped her in arranging the finance, then she can show the loan amount as her liability by crediting his husband's account. In such a case she can claim Interest U/s 24(b) only.
.
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27 December 2014
But in whose Balance sheet house property and loan amount should be shown?
CA R SEETHARAMAN
(Expert)
27 December 2014
If husband has purchased the property show both property and loan in the balance sheet of husband.
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CA R SEETHARAMAN
(Expert)
27 December 2014
Amount invested by husband so it will appear in his balance sheet.
CA R SEETHARAMAN
(Expert)
27 December 2014
Yes it can be shown..........
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29 December 2014
Bafna sir,
Income from house property is not included in section 64(1)(iv).
Income from house property is not included in section 64(1)(iv).
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