Interest of housing loan [Resolved]

This query is : Resolved

GANESH NEGI (Querist)

02 March 2016 I have taken a loan for rs. 12 lac emi is 12000 per month, interest paid during the year is 130000. the property is joint with my wife. can i take the benefit of entire interest paid for the housing loan as my wife is house wife and no. income.

CA Kapil Verma

CA Kapil Verma (Expert)

02 March 2016 Yes, you can avail whole interest in your ITR

Kapil Verma
Founder TaxAdvizer.com

ROSHAN JAIN

ROSHAN JAIN (Expert)

02 March 2016 The total interest paid on the loan is allocated to the owners in the ratio of their ownership. To claim the tax benefits on the property –

You must be a co-owner in the property
You must be a co-borrower for the loan

When these conditions are met, the tax benefits that can be claimed in financial year 2015-16 are –

For a self occupied property – Each co-owner, who is also a co-applicant in the loan, can claim a maximum deduction Rs 2,00,000 for interest on the home loan in their Income Tax Return. The total interest paid on the loan is allocated to the owners in the ratio of their ownership. Each owner/borrower can claim interest benefit upto a maximum of Rs 2,00,000.

For a rented property – For a property which is given on rent the entire interest can be claimed as a deduction.

Each co-owner, can claim a deduction of maximum Rs 1,50,000 towards repayment of principal under section 80C. This is within the overall limit of Rs 1,50,000 of Section 80C.

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