IT on income from property

As per my opinion: you can show nil income from house property and claim 50% of interest on housing loan u/s 24(b) with maximum limit of rs.1,50,000/- and

your wife can show total rental income as income from house property and claim 50% of interest on housing loan u/s 24(b) with maximum limit

because as per section 24(b) of income tax interest on housing loan will be allowed as deduction on accural basis not on payment basis. But principle allowable as per payment basis u/s 80C so you can claim total prinicple payment u/s 80C subject to maximum of Rs.1,00.000/-.

Any body please correct me grammer and spelling mistaks as well as my opinion

OM SAI SRI SAI JAI JAI SAI

Dear Rahul,

This House in City A cannot be said to be purchased by your wife on following reasons as you have mentioned :-

1) She has no souce of income because she is a house maker.

2) The Loan Repayment is being done from your Bank account (although she is a joint owner of the house alongwith you)..

Now even if the ENTIRE Rental Income comes in the name of your wife, the ENTIRE RENTAL INCOME WILL BE TAXABLE IN YOUR HANDS ONLY (Because the provisions of Clubbing of Income will apply)

However Following Benefits are available to U :-

1) The Entire amount (Even in EXCESS OF 1,50,000) of interest on ACCRUAL BASIS WILL BE ALLOWED  AS DEDUCTION FROM ABOVE RENTAL INCOME u/s 24..

2) The Entrire amount (Upto Maximum of Rs. 1 Lacs) of Principal on PAYMENT BASIS WILL BE ALLOWED AS DEDUCTION FROM GROSS TOTAL INCOME u/s 80 C 

3)The Entire amount of Municipal Taxes on PAYMENT BASIS WILL BE ALLOWED AS DEDUCTION FROM ABOVE RENTAL INCOME u/s 24..