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hoam loan

sagar mohan (student) (93 Points)

09 June 2010

i would like to know about details regarding tax benifts of home loan. plus also would like to know in case where husband and wife jointly take a house and wife takes home loan for same will the husband be entitled to tax benifit if he pays the interest of the same.

also would like to know were pre construction and post connstruction period is applicable if take house from builder were house are alloted before and construction starts later

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3 Replies

(Guest)

dear friend if the property is self occupied then u can claim int max of rs.150000 if construction complete in 3 years otherwise rs.30000.u can claim ded u/s80c of rs.100000 for principal repayment.in case of co owned prop both can claim int and principal deduction.

sagar mohan (student) (93 Points)
Replied 09 June 2010

yes. but i want to know

is it necessary that home loan should be taken in name of the co owner who wishes to take deduction?

in case of flats alloted by builders before their construction and payment being made in advance and construction linked instalments would such pre and post construction clause apply?

deepak K Gujrati (CA-practice) (1077 Points)
Replied 16 June 2010

To claim benefit of Home loan interest, it is essential that property should be owned by the borrower. If the property is in the name of any one and loan is taken by other , interest will not be allowed. As mentioned it is jointly owned property and both are the borrowers also i.e one is borrower and other is co borrower the benefit of the interest can be claimed .

If percentage of ownership is not defined and the first borrower wants to take full benefit of interest it is quite possible. It is essential that installment should be paid from his/her account.