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Interest on housing loan

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CA Dinesh Kalyani

36 Points Posted on 16 February 2016

property is in name of myself, father, mother. house loan also is in name of self, father, and mother as Co borrowers. EMI paid by me and father only, as mother has no income. can I and my father take benefit of all interest on housing loan paid during the year (50% each to me and father). or it will be divided in all the Co borrowers (1/3 to each)?

Replies (5)

Deepak Tapse

Accounts Manager - Taxation

1316 Points Posted on 17 February 2016

I think you and your father can claim 50-50% as you both are paying EMI. Let's see others view also

Shivani Mittal

Practice

323 Points Posted on 17 February 2016

Hi,

It will be available as 1/3rd to each. Deduction u/s 24(b) is not related to payment of emi or earning of income as it is allowed on accrual basis.

Regards

CA Shivani Mittal

Sivaramakumar

GM-ACCOUNTS

142 Points Posted on 17 February 2016

Since all Co -Owners are eligible to claim interest individually, interest will be allowed according to your share in the property in your case 1/3 each.

As the EMI is paid by you and your father, do get a declaration from your mother that the you both will pay the EMI for the entire loan, and she will not claim any benefits on interest against her share. Since the act allows to carryforward the loss on house property resulting by way of interest claims in case of self occupied property for each co-owners.