House property

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CA JAYESH RELKAR (Querist)
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10 September 2013 If house property is in joint name (assuming there are two joint holder Mr. A and Mr. B , share 1:1), and Mr. A is paying entire interest from his pocket, then can he claim 100% of interest paid u/s 24(b) of Income Tax Act, 1961 even if his share in house property if restricted to 50%?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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10 September 2013 Dear jayesh,

Please refer to

https://www.caclubindia.com/forum/home-loan-repayment-by-nri-239605.asp#.Ui9hjX_G5rc

https://www.caclubindia.com/forum/deduction-u-s-24-b-242342.asp#.Ui9i_H_G5rc

CA JAYESH RELKAR

CA JAYESH RELKAR (Querist)
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11 September 2013 Dear nikhil,

i am greatful for you support.

i opened these two links but in both links, expert's give their opinion by saying "i think".... They are not giving conclusive evidence by referring to any section or case law. Can you provide me such conclusive evidence which clarify the matter.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 September 2013 Hi jayesh,

can you tell me more details: like is the house rented? or self occupied? approx interest paid?

CA JAYESH RELKAR

CA JAYESH RELKAR (Querist)
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11 September 2013 yes sure, here are the details.

Mr. A has rented the property. interet Rs. 1,65,000.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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12 September 2013 Hi Jayesh,

if the property is rented out, then there should not be any issue in claiming 100% interest deduction.

I assume A and B are joint lessors in this deal and that the loan is in Mr A Name. Even then Mr A can claim Rs 165000 as interest expense against his share of rental income. There is no need for you to search for case laws as this position is anyways settled in the act itself.

Other experts may opine differently. However, the above position, I believe, is a settled one.

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