House loan interest

SANJEEV KUMAR (Finance professional) (227 Points)

24 March 2014  

One of my employee has taken housing loan as co-applicant with wife and paying interest and principal fully from his salary since his wife is housewife and had  no income. Property is held only in the name of wife.whether husband  can claim deduction of interest and principal from his income?

Somebody was telling that since the husband is paying total amount, the wife's income will be clubbed with husband income  here and so he can claim interest and principal as deduction.

Pls guide.