Tax planning Intt on home loan
This query is : Resolved
07 December 2022
Dear Friends,
A and B are husband wife. A is working in a Pvt co while B is a housewife.
They purchased a society flat in Noida in Joint name and A took a home loan of 15 lacs from ICICI bank both are joint applicant. They have taken possession of the flat in 2017 and since then it has been let out. The rent is transferred by the tenant in their joint account.
A files his ITR showing salary income plus rent received from Noida Flat and B also files her ITR for her interest income but not taxable.
The home loan will finish in Aug 2025. But A wants to close the loan in 2023-24. As the interest on home loan is now not much.
A sought an advice for the following query:
Suppose in 2023 A close this home loan.
Post prepayment of home loan can A show the house rent income in her wife B's ITR or 50-50% in the ITR or both A and B to minimize the tax burden.( As a result of this the rent income and deduction for home loan interest will nullified to some extent). or even now prior to closure of home loan.
Thanks & regards
PC Joshi
A and B are husband wife. A is working in a Pvt co while B is a housewife.
They purchased a society flat in Noida in Joint name and A took a home loan of 15 lacs from ICICI bank both are joint applicant. They have taken possession of the flat in 2017 and since then it has been let out. The rent is transferred by the tenant in their joint account.
A files his ITR showing salary income plus rent received from Noida Flat and B also files her ITR for her interest income but not taxable.
The home loan will finish in Aug 2025. But A wants to close the loan in 2023-24. As the interest on home loan is now not much.
A sought an advice for the following query:
Suppose in 2023 A close this home loan.
Post prepayment of home loan can A show the house rent income in her wife B's ITR or 50-50% in the ITR or both A and B to minimize the tax burden.( As a result of this the rent income and deduction for home loan interest will nullified to some extent). or even now prior to closure of home loan.
Thanks & regards
PC Joshi
07 December 2022
What was contribution of wife in purchase of the flat?
Whether there is any clause of shares in the flat, in the purchase agreement?
Whether there is any clause of shares in the flat, in the purchase agreement?
07 December 2022
The sale deed (currently pledged to the ICICI bank) is registered in the name of both husband and wife i.e., the wife is a co-owner of the flat with husband.
07 December 2022
Well, without her financial contribution in flat there could be application of clubbing of income, but still you can declare 50:50 ratio of rental income in both ITRs.
07 December 2022
She has some contribution from her Sridhan in the direct payment made to the builder by them apart from loan taken from bank.
One more thing can this 50%-50% rent income can be declared in the ITR to be filed this FY as well when the loan is still open?
One more thing can this 50%-50% rent income can be declared in the ITR to be filed this FY as well when the loan is still open?
07 December 2022
Yes, provided home loan re-payment certificate is in joint name, but do claim 50% of home loan interest also.
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