Re: Dedn of Int. on House Prop. owened by wife?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2009 Property Belongs to: Wife
loan taken by: Husband
Payment of Interest by: Husband
Deduction claimed by: Husband

whether the assessee i.e. husband can claim the Deduction u/s 24???

whether wife can claim deduction u/s 24???

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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19 December 2009 This is the common mistake committed by the assessees. They take the property in wife's name but since husband's income is more hence they take loan in husband's name.

Whatever is being claimed in the Income Tax Return is wrong.

Since wife has not taken loan; so there is no question of claiming deduction.

If property would have been purchased in joint name; then tax planning could be made.

Querist : Anonymous

Querist : Anonymous (Querist)

24 December 2009 Thank You for your valued reply.

Sir, I further want to ask you that---

Can I treat Loan for HP as Loan for personal purposes and show Interest Paid under the head of income from other sources to reduce interest Income????

Further in case of salaried assessees Interest of that Loan be set off against salary income????

In anticipation of positive reply

Aashok Kumar Sharma online

Aashok Kumar Sharma online

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20 July 2025 Your question relates to deduction under Section 24(b) of the Income Tax Act, concerning interest on borrowed capital for a house property owned by wife but loan taken and repaid by husband.

Let’s break down your queries step by step:

🔹 1. Can the Husband Claim Deduction u/s 24(b)?
No, the husband cannot claim deduction u/s 24(b) if:

He is not the owner or co-owner of the house property.
Deduction under section 24(b) is available only to the owner of the property.
So, even if:

The loan is in his name,
He is making the EMI payments,
He cannot claim interest deduction unless he has ownership in the property.

✅ Exception: If the husband is a co-owner (joint ownership), then proportionate deduction can be claimed.

🔹 2. Can the Wife Claim Deduction u/s 24(b)?
Only if:

She is the owner of the property, and
She is the borrower or co-borrower, and
She is the one making repayments.
In your case, if:

Property is in wife’s name,
Loan is in husband's name,
Payments are made by husband,
Then wife also cannot claim the deduction because she is not servicing the loan.

✅ In short: Deduction requires both ownership and repayment. One without the other won't qualify.

🔹 3. Can the Husband treat Housing Loan as a Personal Loan and claim interest against Income from Other Sources?
No, this is not permissible.

Interest paid on personal loan is not allowed as a deduction against "Income from Other Sources" unless there is a direct nexus to earning that income (like a loan taken for earning interest, dividend, or royalty, etc.).
A housing loan for a house not owned by the assessee cannot be adjusted here.
🔹 4. Can a Salaried Assessee Set Off This Interest Against Salary Income?
Again, No.

Interest on housing loan cannot be set off against salary income unless it qualifies under Section 24(b) (i.e., the person is owner/co-owner of the house).

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