10 July 2012
An assessee(wife) sells a residential property within one a half year of its purchase. The assessee (wife) has also claimed housing loan interest solely/ singly till the date of its disposal. Is the claiming of housing loan interest caliming till the date of its disposal right? Also the document is in the name of husband and wife in this order. Can the wife pay the tax entirely / singly on this short term capital gain even if her name is second as she had claimed the housing loan interest without sharing the same with husband?
Yes You can claim the interest on loan till the date of disposal .
Explanation.Where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed, as reduced by any part thereof allowed as deduction under any other provision of this Act, shall be deducted under this clause in equal instalments for the said previous year and for each of the four immediately succeeding previous years:]
And tax will be borne by you in the proportion of the share of gain.
As per your query, Assessee has taken home loan on eaqualent preporation in the name of his and her wife.
As per Section 27 , at the time of sale loan interest can be claim till the date of property passation, not till the date of disposal of right (registary)
Further also your clent can loan interest in the proportion of his/her share only.
11 July 2012
can the assessee (wife) claim that the short term capital gain accrued on the sale of residential property will be borned by her as she was claimining the interest in her return even thought the property is held jointly with husband and wife ( husband's name being the first in the purchase and sale deed)
11 July 2012
No ,She can not claim that the short term capital gain accrued on the sale of residential property wll be borned by her as shse was claiming the interest in her return even though the property was held jointly with husband and wife .
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