Deduction under Section 80C to Co-owners of property

Samir (ACA) (113 Points)

29 June 2010  

Sec 80C (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed one lakh rupees.

 (2) The sums referred to in sub-section (1) shall be any sums paid or deposited in the previous year by the assessee

                (xviii)           for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head “Income from house property” (or which would, if it had not been used for the assessee’s own residence, have been chargeable to tax under that head), where such payments are made towards or by way of—

      (a)  any installment or part payment of the amount due under any self-financing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis; or

      (b)  any installment or part payment of the amount due to any company or co-operative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him; or

      (c)  repayment of the amount borrowed by the assessee from . . . .

@ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @

 

In case a House property and Loan is Co-owned by 4 assesses (Husband, Wife, Father and mother). Forget the provision of Section 24(b)

 

How will the deduction u/s 80C apply?

 

Will it be available only to the payer of the loan {as per section 80C(2)}?

 

What if for 2-3 F.Y only 2 joint assesses (husband and wife) re-pays the principal amount borrowed under HL, while the other 2 don’t pay at all?

 

What if later the 2 assesses (husband and wife) lose their jobs and have no money and later on the other 2 assesses (Father and Mother) repays the loan for 4th F.Y onwards, can the later 2 assesses (Father and Mother) claim deduction u/s 80C as they are co-owners and the principal amount of loan has been actually paid by them? (No need to emphasis that the former 2 will not claim any benefit of the same u/s 80C)

 

This is an actual situation, so I expect some genuine answers, Thanks to all.