Interest on loan taken jointly

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Dipjyoti Majumdar

CA in service & CS. dipmaj@

2886 Points Posted on 07 February 2015

Friends

I have a question on income tax.

A home loan is jointly taken Mr. F and his son Mr. S and the interest on loan paid to financial institution is Rs 10,000 in FY 2014-15 from joint account. In this scenario, is both the individual tax payers allowed a deduction of Rs 10,000/- each under section 24 of the IT Act 1961. Or the amount of interest of Rs 10,000/- be divided in some proportion for deduction in their individual respective computations.

Suppose, the payment is made from the bank account of Mr. F. Then does the answer change.

Regards,

CA Dipjyoti Majumdar

Replies (4)

CHAVDA SANJAY MANSUKHBHAI

proprietor

288 Points Posted on 07 February 2015

in house howmany persentage is belong to mr.f and mr.s

if the ration is 50% percentage then the amount is rs.5000 for each person

Vishal Goel

Chartered Accountant

1725 Points Posted on 26 March 2015

Hello,

The tax benefits are applied according to the proportion of the loan taken by everyone involved in the joint loan. For e.g. if the ratio of ownership is 70%:30% then the loan amount of 50 L will be split as 35 L and 15 L respectively and interest/principal applicable to the respective amounts will be taken into account for each individual taking the loan. For claiming your tax, it is best to procure a home sharing agreement, detailing the ownership proportion in a stamp paper, as legal proof for ownership.

Total deduction available Rs- 10000/-.

Vishal Goel

Chartered Accountant

1725 Points Posted on 26 March 2015

If Mr. F only person repaying the loan, Mr. F can claim the entire tax benefit.

NAVEESH DHAR

ADVOCATE- TAXATION ADVISOR

414 Points Posted on 26 March 2015

The person, who is the owner of the house, only can claim the deduction for interest on housing loan. If both i.e. father and son are the owner than deduction for interest be divided among their onwnership ratio,