Interest accrued on House property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2010 Kindly clarify the following:-

(1) I've purchased one flat in the name of my Wife by taking loan from BANK. my wife is not employed. Can I calim Interest paid on borrowed capital in my I.T. return since I am working in a PSU.

(2) my wife is having I.T PAN. if she claims the interest only and there is no other income. can she get refund from the departmtn?

(3) If the property purchased in co-ownership, then who can claim the interest rebate?

kindly do the needful.

regards,

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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01 August 2010
1. You cannot claim interest rebate if the house is in your wife name

2.Since there is no income no tax,no refund

3.if the property co -ownership and loan also joint loan both the owners can claim interst rebate

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2010 Mr. X is employed in a PSU. His wife is not employed. A property has been purchased by Mr. X in the name of him self and his wife as joint property holders, and the loan taken for purchasing the property is in the name of Mr. X and Mrs. X is co-applicant for the laon taken.

in the above case if Mrs.X is received rent in her name by way of cheque or e-banking, for the joint property is exempted from Income from House property?

if Mr. X is claiming the Interest accrued on the borrowed loan only without considering the rent received by Mrs. X, in his I.T. Return, is it valid?

reply is requested please.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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11 August 2010 In the above said case

1. Both the co-owners can be claimed interest u/s 24

2. Mrs.X if need to show Income from house property (Rental Income) and Interest is actuals fully deductible instead of Rs.1.50 lakhs

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