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Change in share for housing loan interest & principal

Tax queries 436 views 1 replies

Mitesh Patel

MBA

28 Points Posted on 19 January 2015

My query is with regards to sharing of Home Loan Interest & Principal repayment deductions under Income Tax.

Me & my wife had bought a flat (we are joint owner and joint borrower), for which we had been claiming Interest and Deductions as 50-50 share each until now.
Recently she has stopped working and hence does not have any income.
All the EMI's till date have been paid by my own individual salary account.
I am planning to claim 100% of principal and interest from this year onwards as she has no income to sustain EMI.

Is there any rule which denies the same?
Is change in claim percentage denied by any law?
Will it be illegal to change claim from 50-50 to 100%?

Replies (1)

Vishal Goel

Chartered Accountant

1693 Points Posted on 20 March 2015

Yes, you can claim income tax exemption if you are a co applicant in a housing loan as long as you are also the owner or co owner of the property . If you are only person repaying the loan, you can claim the entire tax benefit for yourself (provided you are an owner or co-owner). You should enter into a simple agreement with the other borrowers stating that you will be repaying the entire loan. If you are paying part of the EMI, you will get tax benefits in the proportion to your share in the loan.