Home loan interest dedn limit for property or individual ?

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This query is : Resolved

ag (Querist)

25 November 2009 Me and my husband hold a joint property and live in the same. We pay total interest of Rs.4 lacs per annum. We deducted Rs.1.5 lacs of interest on each of our income. The IT dept has raised a query on the same and has passed an order saying the limit is applicable to the property and not individual. So each of us can claim a max of Rs.75000 only. Please advice.

hshivakumar

hshivakumar (Expert)

25 November 2009 If property and loan account is taken jointly then deduction is available to both.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

25 November 2009 In view of the provisions contained in section 26 yourself and wife is entitled to 50% each of the interest due subject to a maximum of Rs. 1,50,000/- per person. In other words, according to me, the view of the income tax authority is wrong.

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)

25 November 2009 The levy of tax u/s 22 is on the Income from house proerty and not on the property itself, what is being taxed is the income of the assessee.
Sec-24 provides deductions against income chargeable.
Thus Interest can be claimed by both of you if share in prepoerty is definite and Interest certificate has been issued by Bank in the name of both of you.