Income tax deductions for housing loan exemptions ay 14-15

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 January 2014 house loan for Rs. 27.4 LAKHS and montly emi principle amount is Rs.4500 and interest is Rs. 23000 /- tenure of loan period is 20 years and house loan is in Joint account with his name as co-applicant and main applicant is his wife. Total property is registered in the name of his wife and she is not employed and not having any other income.

He wants to clarify the following:

1. He wants to take house loan deduction benefits (Exemption of loan interest component) of Rs.1.5 lakhs under section 24.
2. He wants to find whether to file return on his wife with rental income for the same as the house is given on rent approximately this financial year of Rs.80,000/-.
3. Apart from the house loan income she is having shares portfolio since 2009 which are under loss (Long term capital). Is there any possibility to claim the long term capital loss along with the house rent income for this financial year. So far no IT returns filed on behalf of her till date

Nikhil Kaushik

Nikhil Kaushik (Expert)
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26 January 2014 It seems that the property was registered in wife's name only for avoiding higher stamp duty. Is it so? also who funded the cost of the house other than the loan amount?? Assuming that it is the husband who bore the whole of the cost, he shall be considered the beneficial owner of this asset and therefore clubbing provisions shall apply. The rental income as well as the interest expense should be covered in "income from house property" in his return.

Now you may say how to deal with the situation where TDS may apply rent (which is not the current issue in your case), then income tax rules do provide for deduction of TDS in beneficial owner's PAN.

With regards to loss under "Capital gains", you cannot set off long term loss from shares anyways as it is exempt income, so even loss is exempt.

I would firmly advise if you are the beneficial owner of the house, you should include in the income from house property in your return and let your wife file return with Long term loss in her own name.

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