Interest & Repayment of Housing loan

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Purvi (Querist)

29 September 2008 Hi All,

One of my client purchase a Residence Flat in Joint Ownership with his Wife. For that he has taken Housing Loan, which interest & monthly installments are paid by & from the my Clients bank A/c, where as loan was also taken in joint name, his & his Wife name.

Now my question is,
who will get the deduction for repayment of Housing Loan interest???
Whether they both entitled to get deduction equaly i.e. (50%-50%)???

Please reply..
waiting for reply.........

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

29 September 2008 If the shares in properties of Husband and wife are distinct and identifiable, both will get deductions. Otherwise only one of them.

K V Subba Rao

K V Subba Rao (Expert)

29 September 2008 Both of them are entitled to tax benefits in proportion of their shares in the Property as per Registered Document.

In order to avoid any complications in future, it is desirable to issue seperate Cheques from both bank accounts. But bank may insist on one Cheque only. So let wife's Cheque for her "share" be deposited in your Client's account from which one single Cheque for EMI can be issued to bank every month.

I also suggest you visit www.apnaloan.com (Taxtips)

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