Interest on housing loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2013 Hi,

Me and my husband has purchased house property in Indore.We have taken housing loan in joint ownership. While we are staying in Delhi house purchased is given on rent. Just need to confirm below points

1 Whether limit of Rs.150000 of interest is applicable to us?
2) If there is no limit we both can take interest exemption in our returns on the basis of amount actually paid.
3) Whether rental income on the house has to be shown by both of us in proportion of the ownership.
4) whether we can take HRA benefit as we are staying in rental house n delhi.

CA bhargava

CA bhargava (Expert)
Follow

14 April 2013 1. as the property is let out, the interest limit of Rs.1,50,000/- is not applicable
2. Both can take the exemption but the total shall not be more than the accrues interest.
3. rental income can be shown by both or by even to a single person for whom taxable income arises
4.you can also take hra benefit.

Anand

Anand (Expert)
Follow

15 April 2013 i agree with all except the point 3 . in my view since the property is jointly owned, legally speaking, the income therefrom is to be shared between the two co-owners.