Housing loan

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N.BALA RANGANATH (Querist)
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07 March 2012 Me and my brother would like to buy a independent house jointly worth of RS.30,00,000

Can we both get housing loan Rs.15,00,000 each separately and claim income tax exemption?

Thanks in advance

CA Ghanshyam Joshi

CA Ghanshyam Joshi (Expert)
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07 March 2012 Yes. Purchase the house in joint name. Repayment from individual accounts will be eligibal for deduction under section 80C principal amount repayment and the interest is deductibal from House Property Income. If House is self occupied then you can claim the loss and set off it against your income from any head including income from salary.

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Krishna Mohan

Krishna Mohan (Expert)
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07 March 2012 First of all, if the property cost is Rs.30 lacs, you and your brother cannot take Rs.30 lacs together. Bank will give only unto 80% of the property value. That apart, you can take the loan on both of your names. Similarly, the property should be in both of your names mentioning the percentage of holding. If you self-occupy the property, both of you can claim interest benefit to the extent of Rs.1.50 lacs each (by you and your brother). Similarly, principal repayment can be claimed Rs.1 lacs each. If you let-out the property, there is no limit to interest exemption.

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