suppose a house is self occupied by 3 persons. they had also taken loan for this house & interest is rs. 800000 p.a.
now my questions are
1. what will be the deductible amount of above interest if all 3 persons have equal share in house &
2. what will be the deductible amount of above interest if there is no specific share in house.
Dear Saurabh,
Where the shares of the co-owners are definite, income and interest must be divided among them in their respective ratio of shares. Hence, in the case, income and interest must be divided equally.
Where their shares are indefinite, the whole income must be treated as income of Association of Persons.
in ur case, NAV will be zero as the house is self-occupied
my question is
what is the amount of interest which can be allowed as deduction in both the above case while computing income from house property
If the shares are definite, the int. to the extent of Rs.150000 can be claimed by each co-owner(Ie.4.5L). However, for the AOP, its only 1,50,000 and not 4.5L
CAclubindia
