INTEREST ON HOUSING LOAN - QUERY

Mr.S has received a notice that he cannot claim the entire interest amount u/s 24 as his wife is also a owner. Is that right?

I would like to know if , the property being jointly held and loan also taken jointly, is it ok for Mr. S to claim the full amount as he has paid the amount from his a/c.?

If they both are coowner of the property and co borrower of the property then interest should be claimed in the proportion of loan taken

If Mrs. S gives a disclaimer letter that she does not want to claim the deduction u/s 24, can Mr. S claim the entire amount?

Also since Mr. S has paid the entire amount , is it not more logical that Mr.S claims the entire amount?

interest should be claimed in the proportion of share in the house property

If Mr S is 50% owner of the house then he can claim interest deduction upto that proportion only

i think only proportionate deduction would be available to Mr. S

He cannot claim full ded of interest u/s 24 as he is paying Mrs. S' interest ( on Mrs. S' loan ) ...

Ded is available only on the interest paid on amt borrowed by him ...

But i am not 100% sure ..

Hello,

Two alternatives are available,

a) Entire amount can be claimed by either by Mr or Mrs.

b) Proportionate amount for their respective shares in the property

The logic behind the logic is the amount claimed should not exceed the amount paid. With the above alternatives it is satisfied.

Mr Sudarsan , Could you site some case law , if any..?

Vijha Mam!

I want to make u very crystal clear tht the Interest on housing loan is allowed as deduction on ACCRUAL BASIS, as u know.

Hence it is immaterial tht who has paid it, so, deduction would be allowed on proportionate basis of their holding.

AO is correct by denying tht ded only to mr x who has paid the whole interest.

if house property is owned by co owner then it will be treated as self occupied in hand of both co owner & if co owner also owned any other house property (self occupied ) then co owned property will  be deemed to be let out (at option) in hand of  all co owner in proportion of their share in property & rental income also be taxed in their hand in that proportion. so in first case (self occupied ) int deduction U/s 24 shall be allowed to all co owner subject to max limit of 150000 for each & in case of DLO Property actual amt of int without limit  proportionately

BOTH CAN CLAIM RATIO AMOUNT

prepotionate can claim & not entire