11 April 2011
i have three queries relating to interest on housing loan repayment.
1.)loan is taken after 2005 in the joint name of husband & wife total interest paid is 205000/-. how much to be allowed under sention 24b ??
2.)in case of default in some cases the outstanding balance instead of decresing increses. suppose loan of Rs.10,00,000/- becomes 1500000/-. then will in subsequent years repayment will be allowed as deduction u/s. 80c>
3.) interest & principal to be allowed on the bais of provisional certificate allowed by bank or actual ??
Thanks in advance.waiting for your reply. my id abhipcc@rediffmail.com
11 April 2011
1) Both of you can claim entire Rs. 2.05 Lakhs interest as deduction. May be you can claim Rs. 1.5 Lakhs & remaining your wife can claim. Or you can claim deduction in tha ratio of loan obtained by both of you. 2) you can still claim principle u/s 80C provided you actually "paid" the amount. 3)you Bank issue provisional certificate & you can claim the deduction based on that. You can claim final deduction in your return of income based on actual certificate ( certifying the actual amount of interest & principle paid )issued by Bank.
11 April 2011
1) If the wife and husband have equal share of ownership in the house property as per the property document,each of them can claim 50% of the interst under section 24(b) of the Income tax Act,1961 subject to a maximum of Rs.1,50,000/- per annum per person. If not,law does not permit to share equally.
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