U/s 24(b) of the Income Tax Act-1961, deduction up to Rs. 150,000/- is admissible against the interest payable on the loan availed for purchase / construction of the self occupied house property.My doubt, is it applicable for co-owernship properties? If yes, is the limit Rs.!50,000/- per head or aggregate amount?
Thank you
hi,the deduction available regarding interest on housing loan will be even available to co-owners and limit of rs 150000 will be applicable per head not on aggregate.
yes both person can claim deduction but the loan should in both names, both person should have 50:50 contribution, both are enjoying the benfits of the flat etc.
in short, it can be proved that the principals and interest was shared 50:50 by the co owners.
If the answer to above is yes, then benefit is allowed.
however interest can not be claimed twice by co owners.
Thank You all for your Replies.
CAclubindia
