Sec 24 - Income from House Property - Joint Applicants

Save Share

This query is : Resolved

K V Subba Rao (Querist)

26 October 2007 In www.incometaxindia.gov.in/questionbank.htm (Qn 94), I find "The net taxable income from the property must be calculated first and then apportioned between the co-owners. In this process of calculation maximum interest payable of Rs.1.5 lakh can be considered only once."

I found contradicting views expressed in the following:

(1) As per www.outlookmoney.com (Let debt play its part) "Opt for a joint home loan with spouse. This will ...give you more tax-breaks... up to Rs 1.5 lakh each under Section 24 for interest repaymentsince both would be entitled for them"

(2) As per www.apnaloan.com/taxtips, "The maximum limit of Rs.1, 50,000 will apply individually to both of you (i.e. the total deduction will be limited to Rs.3, 00,000). The relevant sections in this regard are, the explanation to Section 26 as well as Section 23(2) and Section 24 (b).

Please enlighten on the above

R.V.RAO

R.V.RAO (Expert)

26 October 2007 DEAR SUBBA RAO GARU,
IF WE READ GOVT. WEBSITE AS QUOTED BY YOU, CAREFULLY,"APPORTIONED BETWEEN THE COOWNERS........MAX.INT.OF RS. 1.5 LAKHS CAN BE CONSIDERED ONLY ONCE".IT MEANS FOR EACH COOWNER THE AMOUNT OF MAX. INT. CAN BE CONSIDERED ONLY ONCE.
IT IS CONFIRMED, BASED ON THIS POINT ONLY THAT EACH OF THE COOWNERS CAN CLAIM RS. 1.5 LAKHS EACH.
BUT NONE OF THEM CLAIM THE MAX. AMOUNT AS RS. 3 LAKHS.
PL. REFER www.taxworry.com for more clarity if any if you need.
R.V.RAO

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now