26 March 2010
one of employee in our compnay has purchased a property last year in his wife name(owner of the property) but finance the loan in the joint name in which first name is his wife and second name is his own(co-borrower)and he(co-borrower) is pay all the installments of the loan. now my question is that is he take the benefit of interest and pricipal amount if yes pls. give me the such reference of any book or e-book, if not than who can only claim the benefit and how the co-borrower can save his own income tax. please clearify me in detail the 31st march is very nearby.
26 March 2010
Interest and principal repayment is subject to the % of ownership. and interest restricted to the maximum limit as allowed in Sec 24. same way principal restricted to max limit allowed in Sec 80 (c).
26 March 2010
As per section 24 the ownership of property also says if the assesse has taken the property on the name of his wife.So I think he is the deemed owner of the property and he can claim the deeduction.
26 March 2010
archana thanks a lot but can u please mail me any link or scanned where i can show that section 24 the ownership of property also says if the assesse has taken the property on the name of his wife. my mail id is goyal_deepak1@rediffmail.com please mail me asap.
CAclubindia
