Home loan tax implications

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VARUN VERMA (Querist)

09 May 2012 I (25%), my brother (25%) & my mother (50%) are co-owners of a flat which we recently purchased. We have taken a joint home loan of Rs.18.50 lakhs for the same. My mother is a homemaker & has no source of income. We two brothers are working, my income is a bit higher than my brother. For the financial year 2012-13, total Interest component will be 153231 & principal 25299 besides 5576 as the pre-EMI. I have following queries:

1. Total interest to be paid by us = Rs 153231 + 5576. Can each of us claim 1,50,000 sec-24B deduction in this case? Or do we need to divide this amount? If yes, then in what %age share? Will it be depending on our salary or any other way we want it to be? Similarly, what about principal component?

2. Can i claim deduction for stamp duty paid for the flat? And for Service tax paid for the flat? And for other misc charges for which I have receipts? I have not taken loan for the same.

3. Currently, the term of loan is 20 years. Can we change it to 15 years? There is only a difference of around 2k / EMI. I believe it is advantageous. Is it? Or is it better to accumulate money & then do part payment of loan?

SHILPA

SHILPA (Expert)

10 May 2012 1. yes both of them can claim 1,50,000 separately
2.yes you can claim
3.principal can be claim u/s 80c subject to limit of Rs.1,00,000 and interest u/s 24

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