Home Loan Interest Benefit

This query is : Resolved

Sanjay Dodrajka (Querist)
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24 July 2009 Hi,

If there is a single property held in joint name of husband and wife(Let us name them A&B). They have taken a home loan on the same for which the interest itself comes to above 3 lacs during 2008-09.

Can both of them claim Home Loan Interest benefit of 1.5 lacs each(Under Loss from House Property) if :

1. A, the husband, has paid all the instalments of the loan.

2. A & B both have equally contributed towards the instalments.

Rgds
SD

Prakash Kanaka M.P.

Prakash Kanaka M.P. (Expert)
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25 July 2009 The maximum interest can be claimed from a single property is Rs.1.50 Lacs. If A the husaband has paid all the installments of the loan, A can claim the deduction of Rs.1.50 Lacs. If A & B both have equally contributed towards the instalments, either A or B can claim max of Rs.1.50 Lacs only. Both cannot claim 1.50 each. ( If you are a deductor and if the property held in joint name, you should take a undertaking from the holder that only one person claims the deduction)

Sanjay Dodrajka

Sanjay Dodrajka (Querist)
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25 July 2009 Thanks.

Can I please get reference to Section/Rule or decided case law which can support this.

Rgds

Prakash Kanaka M.P.

Prakash Kanaka M.P. (Expert)
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01 August 2009 Hi Sanjay,
You can refer Income tax rules- Income from House property.
Section 24(b).

In a single house, both cannot claim as self occupied.

If you have 2 floors, then 1 floor can be shown as Self Occupied by A and the second floor can be shown as letout property by B and can claim the deduction under income from house property.

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