housing loan

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Querist : Anonymous

Querist : Anonymous (Querist)

25 May 2010 I purchased a plot in my name in the year 2006.In the year 2007 i got married and took a home loan for constructing a house on that plot.Me and my wife are co applicants in the loan but the house is still in my name and we are living in it.
Now (A)can my wife claim the benefit of home loan deduction as she is a co applicant.
(B)What about HRA deduction.If she claims will it be added in my income.We live with the parents.I have read in this forum that a wife can not pay house rent to the hudbsnd.Therfore If i can not recieve the rent can my parents claim it.
THX in ADV

CA.Amit Revankar

CA.Amit Revankar (Expert)
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26 May 2010 A)As u r the owner of the property, income from house property will be assessble in u r hand and deduction for total interest accrued will be allowed for that proprty, Even if u r wife is co-applicant for loan.
b)HRA will not be allowed as exemption from salary and same will be taxed in the hands of u r wife.

Not understood u r remaining part of question.plz make it clear to answer.

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CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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27 May 2010 agree with amit and continuing , as u r not paying rent, no exemption will be available in HRA and full amount will be taxable in receptionist hand

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