Interest on housing loan
This query is : Resolved
kumarendra chowdary
(Querist)
08 May 2015
One of my clients (Mr. X) has salary income. His wife has got a site. She has availed a housing loan from a Bank with her husband as co applicant and constructed a house. Mr.X's wife doesn't have any taxable income. Mr. X is repaying housing loan (both principal & interest) from his salary.
Mr. X is admitting this as his property under INCOME FROM HOUSE PROPERTY and claiming interest payments as loss from house property and setting off against salary income and principle payments under section 80C. The assessing officer has refused to consider the above payments, as the house property is not in the name of assessee i..e. Mr.X. The A.O. says those payments are to be treated as loans to wife and Mr. X can"t claim deductions from his salary.
My query Is whether the claim of Mr. X is correct?. Please inform.
Mr. X is admitting this as his property under INCOME FROM HOUSE PROPERTY and claiming interest payments as loss from house property and setting off against salary income and principle payments under section 80C. The assessing officer has refused to consider the above payments, as the house property is not in the name of assessee i..e. Mr.X. The A.O. says those payments are to be treated as loans to wife and Mr. X can"t claim deductions from his salary.
My query Is whether the claim of Mr. X is correct?. Please inform.
Amol S Joglekar
(Expert)
08 May 2015
Prima facie the claim of Assessing Officer is CORRECT.
At the most, what one MAY argue is on the lines of % ownership e.g. 50% wife and 50% X
In such a scenario, the housing loan benefits viz 80C, loss from house property etc. can be claimed in the same proportion as that of ownership, subject to, however other restrictive provisions of Income tax.
At the most, what one MAY argue is on the lines of % ownership e.g. 50% wife and 50% X
In such a scenario, the housing loan benefits viz 80C, loss from house property etc. can be claimed in the same proportion as that of ownership, subject to, however other restrictive provisions of Income tax.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst credit note by supplier
- Movement of goods by packers and movers - type of sale - Reg.
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Missed uploading GST Invoice
- Query on effect of registration of property
- Gratuity paid to legal heir above 20 lakh is taxable or not
- Wrong CMPo8 file
- Equity Share Sale and Purchase
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
