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Home loan interest & principle deduction.

DHEERAJ (STUDENT) (26 Points)

10 May 2021

A HUSBAND AND WIFE PURCHASED A HOME BY TAKING HOME LOAN. REGISTRY OF HOME IS IN THE NAME OF WIFE AND LOAN WAS TAKEN JOINTLY. PAYMENT OF HOME LOAN IS MADE THROUGH HUSBAND'S ACCOUNT

MY QUERY IS WHO CAN CLAIM DEDUCTION U/S 80 C & U/S 24(2)B . ALSO TELL ME WHERE TO SHOW HOUSE PURCHASED AND HOME LOAN TAKEN WHETHER IN HUSBAND ACCOUNT OR WIFE ACCOUNT.

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6 Replies

Chirag (Professional) (1979 Points)
Replied 11 May 2021

If they are co borrower ,then registration should be of joint name which is not in this case ,so only wife can take benefit of Principal ,Interest...also loan account will also be in the name of Wife and not Husband & Wife ,(Husband may be Guarantor),which account is funding will not have any relevancy...

Lotus Agrawal (Practice) (1356 Points)
Replied 11 May 2021

Agree with chirag. as regn is in the name of wife only wife can claim deduction.

DHEERAJ (STUDENT) (26 Points)
Replied 11 May 2021

Ok then how to show emi payment because emi is deducted from husband's account?

Chirag (Professional) (1979 Points)
Replied 11 May 2021

Which account is linked for emi payment is not important, but, as per me, it's not happen that wife is a borrower and husband account is debited for EMIs, it may that they are co-borrower for loan purpose only (generally Banks/HFCs insisted for co-ownership also )... However , for taxation benefits under sec. 80 & 24(b) it's purely on ownership basis....If both hold joint ownership as per SRO records, then generally everything divided equally and both can take benefit U/S 80C , (80EE/80EEA ,if eligible ), 24(b)...