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Housing loan deduction

CA Saxena (CA) (161 Points)

14 February 2012

-the house is in the name of wife of the assesse

-the loan is in joint name of asessee and his wife.

-payment being made by the assessee.

Can wife & husband both claim deduction in this case. if yes what amount

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4 Replies

vinay (accounting) (165 Points)
Replied 14 February 2012

The deduction of Interest on Housing loan can be claimed only by the owner of the property. In this case his wife is the owner of the property and alone is she eligible to claim the deduction provided she pays the interest amount. It is very clear that, although her husband contributes paying the loan EMI, he is not elgible for claiming deduction.

Anooj (Chartered Accountant) (2130 Points)
Replied 15 February 2012

Since the housing loan is taken jointly, i think both can claim deduction u/s 80.C.

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Tony John (Chartered Accountant) (6085 Points)
Replied 16 February 2012

I think any one of them can claim deduction. But not both together.

meabhijit (Project Manager) (172 Points)
Replied 17 February 2012

My understanding is that both are eligible for deduction. I think this is a case wherein the next borrower was added at a later stage to loan agreement. The distribution of EMI between borrowers is assumed to be equal or % basis and hence deduction is allowed for both. The deduction is given per the certificate provided by the lender (which in this case will have both names).