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Ded. u/s 24 & 80C

Ashish Malik (FCA) (36 Points)

28 May 2009

In case of housing loan taken in Joint name, can both individuals claim deductions of Interest and principal in different proportions ? i.e 30:70 for interest u/s 24 and 40:60 for interest u/s 80C ?

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3 Replies

PiyushAgrawal (Chartered acooutant in practice) (575 Points)
Replied 28 May 2009

Originally posted by :Ashish Malik
"	In case of housing loan taken in Joint name, can both individuals claim deductions of Interest and principal in different proportions ? i.e 30:70 for interest u/s 24 and 40:60 for interest u/s 80C ?	"

In my opinion if they are co-oweners than they both get deduction of 24 in proprtionate.

who pays principal get deduction in 80C.No deduction of interest should allow in 80C

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Ashish Malik (FCA) (36 Points)
Replied 28 May 2009

What if the share in property is equal and the principal is paid from a joint bank account ?

Radheyshyam Falod (CA) (416 Points)
Replied 10 June 2009

It depends how u account for the joint bank account i. e. in whose books. Ideally if the share is equal then equal deduction for both 80C & 24. U cannot claim different ratios for the two sections.