Tax benefits of housing loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2015 Sir,
An individual has purchased a flat with his wife as co-owner. He has also taken a home loan in joint name (Himself and wife). However he is alone making the total repayment of home loan instalments. My query is -

1. Whether he alone can claim deduction u/s 80C for the total amount of principal paid during the year?
2. In case we show deemed rent from this property in his hands, do we also have to show it in the hands of his wife? (3 Properties, including this one, are owned by him, however this is the first property in the name of wife).
3. If we show deemed rent from this property, can husband claim the deduction of total interest paid u/s 24b or it has to be proportioned between husband and wife?
4. Can the home loan be repaid from his personal savings account or it has to be repaid from joint account?

Please give your suggestions ASAP. Thanks.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 April 2015 1. If repayment is made alone only he can claim deduction u/s 80C.
2. Deemed rent can't be shown between husband and wife.
3. Does not arise.
4. It has to be repaid from joint account to claim benefit for both of them.

Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2015 Thank you Mr. Seetharaman.

But sir, as per Income tax Act, if an assessee owns more than one house, only one house can be considered as self occupied house and the other has to be deemed to be let out. Thus, we have to declare deemed rent income in the hands of husband.

My query is, if we are showing deemed rent income from a property in the books of husband, can he claim deduction u/s 24b for the total interest paid by him on housing loan?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 April 2015 Yes it can be claimed.......

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