Home loan interest deduction

Can me and my co-borrower (only 2 home loan applicants in this case) take deduction of home loan interest on the entire loan amount if we jointly hold only 50 ownership in the property?
Replies (3)

Dear Sir

 

You can claim deduction on total interest paid during the year on proportionate basis in share of ownership.

 

Example:-   

 

Interest paid during the year 2014-15                                        Rs. 150000

Share of Ownership                                                                   50% Each

Total Deduction For    "A"        (150000*50%)                              75,000

Total Deduction for    "B"         (150000*50%)                              75,000

Thanks for the quick response. Please help me with the below example: A,B,C,D - 4 owners, 25% ownership each. Loan applicants - A and B (only 2 applicants) Property Value - 80 lakhs Loan applied - 60 lakhs Can A and B: 1. claim interest deduction on full loan amount of 60 lakhs? OR; 2. Claim interst deduction only on loan amount equivalent to value of property multiplied by ownership in property, i.e. 40 lakhs (25%+25%=50%*80lakhs)

Dear Sir

 

1. As (Mr. A and Mr. B) are the applicat and the repayment should be route from their account. 

2. Loan Borrowing Document should be in the mane of Mr. A and Mr. B.

 

You could claim deduction of interest on whole loan amount in proportionate basis (i.e. 50% of "A" and 50% of "B").

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