14 July 2024
Scenario: - My wife and I are co-owners of two properties with active home loans. - The first property was purchased nearly 7 years ago, and the second property's loan was acquired in FY23-24. - We are living in the second property. - I am solely responsible for repaying both home loans. - Rent from the first property is credited to my wife's account. - Under the old tax regime, my gross income before tax exceeds 50L annually; however, my income after taxes is less than 50L.
Queries based on this scenario: 1. Which ITR form should I file—ITR1 or ITR2? 2. Can I claim the annual interest on both properties' home loans (approximately 1 lakh for the first property and 2 lakhs for the second property)? 3. Is it legally permissible to show rental income in my wife's ITR while I am responsible for loan repayments? 4. Can I claim deductions under all applicable sections: 24(b), 80EE, and 80EEA?
Experts, could you please help with all these queries. Please feel free to ask if you have any more questions or need further clarification!
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