My question is as follows:
Mr. A & Mrs A have jointly purchased a property X. Mr. A is salaried person with 30% tax bracket whereas Mrs A is house wife with no income. They have rented this property X (full rent Rs. 3 lakhs) against which there is home loan in which Mrs A is also Co-borrower. All installments are paid by Mr A only from the beginning of the loan. Interest Rs. 3.18 lakhs & Principal Rs. 2.30 lakhs.
Now, the question is: whether Mr A can claim entire home loan interest and principal?? As per IT Act provisions, we need to show Mr A & Mrs A as 50%:50% owner in ITR. So the rent will get divided between them (To Mr. A rent will be Rs. 1.50 lakhs). But since all the installments are paid by Mr A, can he show this entire interest & principal in his ITR? Then it will negative house property Income as the rent will be 50% and entire Interest on Home loan will be adjusted.
he can claim 50% interest & principal only?