Housing Loan in case of Joint Holders

You can take take deduction of principal amount u/s80c for 1 lac and interest amount u/s 24(B) for 1.50lac. you can take deduction of 50:50.

Sir

This is clear that any individual can claim the rebate upto Rs. 1.5 lac for interest and Rs. 1 lac for the principal amount, but the question is wheither the individual can claim the benefir for both the houses or not? and in case he can claim the exemption for one house for full?

You can claim deduction on both the houses and seperate deduction on interest will be available for both the houses. But only thing is out this houses one of house of the assesse choice will be treated as self ocupied and all others will be treated as rented(Even if it is not rented)

In case self occupied house deducution will be limited to Rs.1.5 lacs and in case of other houses deduction of entire amout of interest will be available without any limit.

In case Joint owners interest will be available for tax exemption in ratio of loan amount.

Regards

Dayananda

Dear Sir

Thanks for the valuable advice, but in this case both brothers are residing in their respective houses separately and both have taxable income. The question is wheither both can claim full rebate of their respective houses for which they are paying the housing loan in cash separately in ratio of 1:1.

Thanks.

If both brothers have taken loan seperately than they can claim deduction on payment made towards interest and principle.

I have doubt in your question whether loan is in third party name other than brothers or loan is in the name of any one of them.

If loan is in 3rd party namen and there are paying to third party by cash than no deduction will be available.

if loan is taken by one of them and other party is paying to him by cash than only the person who has taken loan can claim the deduction.

I think you were question is no clear(sorry if am hursh)

Regards

Dayananda

Dear Mr. Dayanand,

It is very clear from the question that:

-  there are two houses owned by the two joint owners (brothers)

-  Joint owners have also taken the loan and repaying the loan directly to finance Co.

It seems that question is " whetther both of them need to declare the one house property as deemed to be let out and pay the tax on notional rent?" ( this will also to the extend of 50% of ownership.

Thanks & Regards

Madhav

Yes Sir,

My Question is exactly that.

Two Brothers have Two different houses in their joint names and two joint housing loans are taken. wheither both can claim HRA in Both the houses or exemption can be claimed in One house only.

Looks like this question didn't get answered properly. I have a similar issue. Can anyone clarify:

If a property is co-owned by two brothers who are also co applicants on the home loan and if one of the brother lives in the house, while other lives in his first house which he owns independently. 

Question is : What is the treatment under section 24C for the brothers? Does one brother who doesn't reside here have to assume an annual value (notional) for a fraction equal to his proportionate share in the loan/ownership?

Hi prasanna,

lets take an example of your query.

A and B are two brothers. Both are the co-owner of a house in the ratio of 1:1 and coapplicants in a loan of rs 40 lacs in the ratio of 1:1.

B also have a separate own house, who lives in his own house.

Now B has two residential properties therefore one house shall be deemed to be let out as per his own wish.

Suppose annual payment towards loan is rs 400000 out of which interest is 300000 and principal is 100000.

Now A and B both will take deduction of rs 150000 each for interest u/s 24 and rs 50000 each u/s 80c. (interest is subject to rs 150000 u/s 24 and payment towards principal is subject to rs 100000. For example in this case if total annual interest is rs 400000 then A and B each will take deduction u/s 24 upto rs 150000. Same concept will apply to principal payment.)

As far as B is concerned who has two houses and lives in his own separate house, he may assume any house to be let out as per his own wish, where he can get maximum tax benefit or where the rent is minimum.

If he assumes that house to be let out for which he is the co-owner then definitely he will take only half share of rent of that house.

I hope this will help you.

Thanx.

Thanks. 

My interpretation was the same, but I was wondering if there is a precedent somewhere which is different.  Guess not.