Section 24 of income from House property

This query is : Resolved

Gurpreet Kaur (Querist)
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21 July 2009 Hi,

My Query: In the loan agreement there are two borrowers A and B and the property is in the name of B. In disbursement letter name of only A is mentioned. The interest is debited from Bank Account of A. Can the deduction under section 24 of Rs. 150000 claimed by B if he shows the payment of interest by a cheque to A. In the interest certificate name of bothe A and B appears. Pls. clarify

B. Vasanth Shanker

B. Vasanth Shanker (Querist)
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21 July 2009 We undertake LPG cylinder testing (statutory requirement)and painting contract. We are registered under Karnataka VAT Act. Hydro testing is purely labour oriented but painting includes materials. it is a composite contract & what is the VAT Liability involved under the Karnataka VAT act & whether we are liable to charge service tax on this service

chetan soni

chetan soni (Expert)
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21 July 2009 You can 50:50 in both income tax computation.

But now as you said you want this to be claim in B's income tax computation, then you must make sure following;

01. You pay interest & principal repayment amount to A on timely basis by chq. (recommended)
02. A is not claiming this component in his personal income tax return.

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