Interest on housing loan

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I have property with 50% share and 50 % owned by my wife..I have taken loan on my name only...can I claim full house property deduction of principal and interest payment
Replies (8)
Subject to limit of 200000 u/s 24 and 150000 deduction under 80C and additional Deduction 50000 under 80EE if you fulfill certain conditions
Even property has 50% share?
Then you can 50% deduction per assessee
Whatever the amount of bank loan, as it's in your name you can take interest benefit upto
1.50 lakhs under 24(2) and 150000/- under 80C
(so far as loan amount is upto your share in property)

It's for the bank how loan amount is used ?

if the husband has used part of the loan towards share of her wife , it will be under clubbing provisions. But no tax benefits for this amount to husband or wife.
Limit of 24(b) is for every owner not single owner, hence while computing HP the maximum interest ded u can claim is 200,000 for that HP. thus u and your wife can in toto claim 200,000.

thus 50% per assessee is the limit for 24 (b)as 50 50 ownership.
if u have paid lesser than 50% of 200,000 , then it will be restricted to such amount paid for you.

and interest payments must be from respective bank accounts of these assesse.
@ Sandeep

Let me clarify

interest deduction is available to a person who has taken housing Loan. Here his wife has not taken housing loan.

As per section 24(2) - in case of joint property and if both have taken housing loan then both will get upto 2 lakhs deduction.
@ kapadia sir

agreed if taken on his name only, then loan interest allowed only to person who has taken loan.

but are you sure that both will get up to 200,000 had loan was taken by both ? because this defeats the spirit of the section. is it explicitly mentioned in rules/section/case laws ?
@ sandeep

The joint owners, who are also co-borrowers of a self-occupied house property, can claim a deduction on interest on the home loan up to Rs 2 lakh each.


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