House property head
This query is : Resolved
Krushant Kachwala
(Querist)
03 March 2016
what is tax treatment if house property loan is in joint name & all installments paid by one person then what is tax treatment for interest & principle payment
Ashish Bansal
(Expert)
04 March 2016
The taxability of house property depends upon ownership ratio. In case there are two co-owners with 50% share each. The annual value of property will be calculated and will be divided in ownership ratio. Now the deduction of interest on house property will be available to each co-owner seperately.
Joint loan is genreally given by bank for their own safety as number of person responsible for payment gets higher. In case, loan is in joint name but all installment are paid by one person only, it appears that this person is main borrower.
Section 80C allow deduction for repayment of principle amount of housing loan on actual payment basis. As only one person is making repayment of housing loan, entire benefit can be claimed by him only.
As far as section 24(b) is concerned, it allows deduction on accrual basis i.e. the amount payble for interest will be allowed under house property.
In my opinion, as only one person is making payment of all installments, he may claim the entire deduction for interest accrued on home loan.
Joint loan is genreally given by bank for their own safety as number of person responsible for payment gets higher. In case, loan is in joint name but all installment are paid by one person only, it appears that this person is main borrower.
Section 80C allow deduction for repayment of principle amount of housing loan on actual payment basis. As only one person is making repayment of housing loan, entire benefit can be claimed by him only.
As far as section 24(b) is concerned, it allows deduction on accrual basis i.e. the amount payble for interest will be allowed under house property.
In my opinion, as only one person is making payment of all installments, he may claim the entire deduction for interest accrued on home loan.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Nursery business
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Issuing of delivery challan by seller of goods
- Tax on Amount transferred in HUF Account
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
