Home loan interest exemption

Tax queries 1471 views 3 replies

CHANDRAN R

SENIOR OFFICER

24 Points Posted on 21 February 2014

Sir, I purchased a residential plot and registered in favour of my wife name. Then I applied home loan and availed from LIC HFL with co-applicant. House construction also completed but I am not a coowner. I submitted home loan interest document for claim income tax exemption. But my employer not accepting and stated that in case plot owner is wife then claiming home loan interest not applicable. Kindly advise me that if I am eligible for claiming house loan interest or not. Waiting your reply. Chandran R

Replies (3)

Guest

I am assuming that the house is not complete. So, there is no question of interest or principal deduction. No IT benefit can be claimed till the construction is complete.

Once the house is complete, you will get 24(b) [interest + 1/5th pre emi ] and 80C [principal] deduction according to your share in the house.(If you are coowner)

Swami Ayyappa Nuli

TAX ADVISOR & CONSULTANT AT G.S.T SUVIDH

1372 Points Posted on 22 February 2014

One of the prerequisites to charge income under the head "Income from House property" is "Assessee should be owner of the House property".He may be a Co-Owner/Owner.In your case he is Co-Partner for Loan but not Co-Owner for Home, so he can not claim interest paid on Home loan u/s 24(b).Furthur comments Invited

prashant

Others

26 Points Posted on 13 March 2014

Sir, I have a query regarding Home loan interest deduction. I purchased a flat in surat, but I dont live in surat. I pay Rs 1, 90,000 as Interest yearly and Rs. 29,000 as principal yearly. My question is whether I can be considered Non self occupied. And to what limit I will be allowed to deduct home loan interest be it 1, 50,000 or 1, 90,000. Thank you in advance.