Deduction of principal amount of housing loan and interest

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This query is : Resolved

CA Shyam Agarwal (Querist)

02 January 2016 Hello Friend
A person repaying a principal amount and interest on loan of housing property. but loan was taken with the name of Mrs. vinod devi and her husband moolchand jontly. bcz moolchand have pension income and vinod devi have no income. during the financial year vinod devi sold a housing property for rs. 30 lacs (FY 2014-15) (Indexed cost of acquisiton is 16 lac) and purchased new housing property for rs. 15 lacs.
I am facing following problem
1. EMI of housing loan was repaying from saving account (this saving account is joint with the name of 1. mool chand 2. vinod devi) then who will take the deduction of repayment of principal amount u/s 80c and interest amount under income from housing property.)

2. Rs. 30 lac was received from sale of house property was also received in joint saving account with name of 1. moolchand and 2. vinod devi. Although the first holder is moolchand but income of vinod devi is also deposited in this account bcz she also joint holder. My question is that if this case select for scrutiny u/s 143(2) then A.O. will accept that rs. 30 lac is related to vinod devi not moolchand.

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)

02 January 2016 House repayment deduction can be taken u/s 80c in income of the person who is repaying,however interest portion is limited to ownership share.
further sale deed would be relevant evidence for showing AO that sale receipts is of vinod devi.

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CA Shyam Agarwal

CA Shyam Agarwal (Querist)

02 January 2016 is it right practice that in a saving account joint holder do the transaction although first a/c holder is another person

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)

02 January 2016 It is not a right practice as sale of immovable property is reported in AIR and ao can issue the notice on both the assessee so it is advised not to repeat the same.however in adjudication it would be easy to prove on the basis of sale deed.

RAHULSMITTAL

RAHULSMITTAL (Expert)

02 January 2016 it is a case of clubbing of income.
since there is no source of income for vinod devi and moolchand is paying all the expense. you can do clubbing and show whole amount as deduction with mool chand.

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