Repayment of home loan by one of joint borrowers

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Suraj (Querist)
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07 January 2014
Dear Sir / Madam,

My query is as follows:

Mr. A and Mrs. A are co-owners as well as joint borrowers in their housing loan.

At the month end, Mrs A transfers her share of home loan instalments to Mr. A from whose bank account the installment gets debited.

Here I wish to know: from Bank records, it shows that Mr. A is only paying the entire home loan instalment since his bank account is getting debited, he can certainly claim principal and interest rebate under Income Tax Act. But since Mrs. A does not pay directly, whether can she claim her share of interest and home loan principal???

If not right now, in future what kind of arrangements she needs to make to claim her portion under income tax act.

Kindly revert.
Regards
Suraj

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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07 January 2014 The transaction between Mrs. A and Mr. B is perfectly all right. Since both are co-owners and also co-borrowers both can claim deduction u/s 80C for repayment of principal and u/s 24 for interest in proportion of their share in the property. Both can individually claim these tax benefits in their returns of income based on their share in repayment of principal and interest. It is sufficient that Mrs. A transfers her share of home loan installment to Mr. A 's bank account. She can claim deduction u/s 80C on the basis of such transfers even though installment is paid from Mr. A's bank account.

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