Deduction u/s24 (2) of I.T.Act,1961 to co-owmer of house pro

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amit (Querist)

23 February 2009 Dear Sirs/Madams,

I am seeking for yours assistance regarding following query.

My parents are joint owners of residencial flat.
My mother's name is shown as first owner and my father is second.
My parents has availed housing loan from financial institution.The loan amount with interest is debited from my mother's saving bank account. The said saving bank account is not a joint account.
I want to know can my father avail the Income tax Deduction u/s 24(2) int. on housing loan and section 80C -repayment of principal amount of loan as being one of the co-owner ?
My mother do not want to take the benefit of the above deductions.
If, my father can get deduction , then at what percentage i.e. 50% of int & repayment amount or full amount ?
Further guide me to which section or approved case in the Income Tax Act should I refer ?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

24 February 2009 When the Bankers have given you joint loan based on the repayment capacity of each individual they will arrive at the loan and give a joint loan by adding those things. If you ask your bankers they will provide for the same. In the same ratio you can claim.

Debiting your mothers's account will not be a problem. You have to transfer amounts from your father sb to your mother's sb towards his share of priniciple and interest.

Based on above two proofs you claim deduction in both the files.

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