Interest on housing loan
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 July 2014
A and B is joint owner of a house and together taken a housing loan. Loan instalment is paid sometime by A , sometime by B. How they can claim interest deduction for IT purposes?
Also A has another property, how to calculate deem rent for this joint property?
A and B is joint owner of a house and together taken a housing loan. Loan instalment is paid sometime by A , sometime by B. How they can claim interest deduction for IT purposes?
Also A has another property, how to calculate deem rent for this joint property?
23 July 2014
only those who pay can take this advantage otherwise its not legal.
Nikhil Kaushik
(Expert)
26 July 2014
1. please note that interest deduction under "income from house property" is not on payment basis but on accrual basis.
2. regardless, you can apportion the interest on the basis of actual interest paid by respective owner.
3. with regards to deemed rent, you need to compute the total rent for the whole of the property and then arrive at gross annual value (as you may do for any deemed let out property). then divide the gross annual value so computed among A and B. for B (assuming he/she doesnt own any other property, his/her share shall be reduced to ZERO and A shall offer his share as income from house property
2. regardless, you can apportion the interest on the basis of actual interest paid by respective owner.
3. with regards to deemed rent, you need to compute the total rent for the whole of the property and then arrive at gross annual value (as you may do for any deemed let out property). then divide the gross annual value so computed among A and B. for B (assuming he/she doesnt own any other property, his/her share shall be reduced to ZERO and A shall offer his share as income from house property
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