80-C

Hello everyone,

The Query pertaining to Deduction u/s 80-C is:

If a working couple (salaries of both taxable) purchases a property (House/ Flat/ Residential unit, etc. eligible u/s 80-C) jointly and equal amounts of housing loans are sanctioned to both of them for purchasing the same property from a Housing Finance Institution based on their respective income eligibilities, then, if either of them pays the collective EMI thru his/her bank account then what will be the available deduction u/s 80-C to both or any of them???

Pls. post ur suggestions.

Rgds,

Aashish.

That means either of them can avail benefit of 80-C for the principal repayment done by either to the Fin. Institution on behalf of both of them....i.e., irrespective of the principal amount actually owed to Fin. Inst. by either of them....is this right?

The benefit of Housing loan EMI payment can be taken by the person only when he /she is the owner of the property.Again it has to be seen who is the borrower. If both of them are the owners and both of them are the borrowers, then only advantage of payment of principal and interest can be taken. In this situation they should open one seperate [joint a/c] sb account and thransfer fund to this account. EMI should be paid from this account. If both are equal owners they should transfer equal amount.

The deduction will be available to both of them. AS both of them has purchased the house property- and hence both of them will take the benefit, upto the limit individually.

decuction to both of them shall be available as both of them fullfiling the condition u/s 80C to claim decuction

regards....!

Thanks for all the informative inputs. 

would further appreciate if Mr. Deepak or Mr. Rajesh could throw some light on whether the collective EMI as paid by either spouse through his/her bank account would entitle 80-C benefit to both or not??? That is, if say, Rs. 20000/- is the individual EMI and so the collective EMI would be Rs. 40000/- and thus if, say, husband pays the entire sum of Rs. 40000/- through his individual savings bank account, then whether the wife would be entitle to 80-C benefit or not on Rs. 20000/- actually repaid by her husband ??? or husband alone would be entitled to the benefit on the whole amount of Rs. 40000/- u/s 80-C???

It is to be taken into view that wife has also taken the housing loan of similar amount for the same property and from the same housing finance company as her husband, only thing being that she is not paying EMI herself and her husband is paying it on her behalf through his account. Rgds,

The main points to get deduction U/s 80C is :

1. The house property shall be registered in the name of the person, who intends to claim deduction towards interest and installment.

2. In the case of working couples having substantial taxable incomes, it may be worthwhile to register the housing property in the joint names and take separate housing loans to claim deduction of interest and installments.

3.  If possible, the EMIs may be planned in such a way that the payments towards principal part of the loan do not exceed the limits available u/s 80C.

I suggest you to open a seperate account and make payment from that account to avoide any trouble.