24 May 2007
I've taken a loan jointly with my wife to buy a house property. Basically the loan is sanctioned on my salary and repaying capacity only. EMI is Rs. 19,000/- Whereas my wife salary is Rs.13500/- only I've registered the house property in my wife's name only. In this circumstance whether i can claim Interest on salary u/s 24 and deduction u/s 80C for the principal portion paid from my salary income Please clarrify
27 April 2009
The interest can be calimed by a person who is the beneficailly owning the hosue and who is infact taking up the burdan of payment on interest and the principle amount. In my opinion in your case you can claim the interest as well as the pricipal amount in full. However, you may have to prove giving clear cut evidense that the entire payment is from your account.