Dear Friends,
Three co-owners (also co-applicants) took home loan (share of each co-owner may or may not be there) but entire EMI was paid only by one Co-owner from his own account. Now
1. Can all co-owners claim Interest & Principal Repayment deduction individually subject the limit provided in IT Act, in their IT Return?
2. Can only paying co-owner claim deduction ? if yes, he can claim full deduction or only to the extent of his share?
3. What happens in above situations if EMI is paid from Joint accounts but funded by only One Co-owner?
Please suggest.
(Plain reading of Section 24 says that deduction shall be allowed for interest payable on capital borrowed. It does not talk about actual payment and who actually paid.)
CAclubindia
