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Deduction of housing loan interest and principal

Manish (xyz) (35 Points)

15 July 2014

Need ur help....

Last year I have purchased a house with my mother as co owner and have taken a loan from LIC (in which my mother is first applicant). As my mother don't have any income, I pay bank emi. Can i claim 100% deduction for EMI under section 80C for principal and for interest u/s 24b.

In addition of that if there is any rental income from this property in future (it is self occupied now), can I show it as mother's income.

Thanks

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6 Replies

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 15 July 2014

yes you can claim 100% deduction of emi in respect of 24b and 80c..... since you and your mother are co owner, any rental income from property will be distributed between both in proportion of ownership.

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Manish (xyz) (35 Points)
Replied 21 July 2014

Thanks Tribhuvan for your reply.

I have one further question on above reply.

Is it possible I rent part of house to my Father (as I am also staying in this house, hence can't rent out the total premises) and my father and mother (being co-owner) entered into rent agreement at monthly payment of INR 15K per month.

1. Will rent income also club in my income being co-owner (which is 50-50) but agreement is between my father and mother.

If yes, will it be in proportion of ownership or 100% as I am repaying 100% loan.

2. I am paying annual interest of INR 4Lacs on home loan, can i claim loss from house property as below:

Rent (50%) - 90,000

30% deduction - 27,000

Interest on HP - 400,000

Net Loss - 337,000

and can Loss from house property be adjusted against Income from salary and what would be treatment that part of house is only rented.

Thanks a lot for your help in advance.

Thanks, Manish

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 21 July 2014

1. honestly speaking i have never never come across any situation like this, so i wont be able to comment much on this. though in my opinion it may be possible because there are situations where a son can pay rent to their parents and thus, if this is possible then a father can also pay rent to his son. rent recd will be distributed in ratio of ownership.

Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 21 July 2014

your method of calculation is correct and also loss can be adjusted from salary...... but since property is partly let out, two diff calculations will be made, one for self occupied protion and other for let out portion. intt will be halfed, i.e. 200000 for self occupied and rest for let out. in case of self occupied, deduction of intt will be limited to 150000..... to summarise my answer, in case of your mother, income from house will be (90000-30%) and in your case it will be (90000-30%-150000-200000)

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