Housing loan interest

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This query is : Resolved

sagar (Querist)

06 June 2016 Me and my Brother have taken Home loan. I am Applicant and he is Co applicant.
But Registry is in my name only. EMI is paid by my Brother.
Can we both claim Intt deduction u/sec 24 on the ground that we both are Co borrower although not Co owners. ??
Thanx in advance.

CA ABHAY GUPTA

CA ABHAY GUPTA (Expert)

06 June 2016 For claiming deduction under this section, assessee must be the owner orIf the home loan is taken on joint names then the deduction is allowed to each co-borrower in proportion to his share in the loan. For taking such deduction it is necessary that such co-borrower must also be co-owner of that property deemed owner of the house property and loan shall be in the assessee name...

CA ABHAY GUPTA

CA ABHAY GUPTA (Expert)

06 June 2016 If the home loan is taken on joint names then the deduction is allowed to each co-borrower in proportion to his share in the loan. For taking such deduction it is necessary that such co-borrower must also be co-owner of that property...since ur bother is paying interest but he is not the co owner and ur owner but u r not paying interest thus none of you cannot take benefit of section 24

CA Rohit Jain

CA Rohit Jain (Expert)

06 June 2016 co owner must be co borrower to claim benefit under this section... So a person who is not co owner cannot claim deduction

Rupesh Jain

Rupesh Jain (Expert)

07 June 2016 no, no one can claim, due to owner is you, and under income tax who is owner and pay the loan who can claim the deduction. in your case owner is you and only loan co applicant is your brother no deduction will available to your brother also.

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