Joint mortgage loan - single ownership, interest deduction

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46 Points Posted on 24 February 2013

 

Dear friends, could someone help me with this question:

I am the single owner of a plot on which I am constructing a commercial building for rental purposes.

 I am raising a mortgage loan, on which I am including my wife as a co-applicant.

I learned that the interest on loan is 100% tax deductible, without any cap, since it is for the construction of commercial property.

When I get rental income, do I get to deduct 100% of all of the interest paid on the loan on my income tax return??  Or it is only the 50% of the interest I could deduct from taxes because my wife was co-applicant on the loan??

Thanks in advance

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On 24 February 2013 at 22:52 Report
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You will get the benefit upto the amount you pay from your account. In case you and your wife both pays equal interest then both of you will get 50:50 deduction.

 

Source: https://www.indiantaxupdates.com/2012/11/06/tax-benefits-on-home-loan-in-india/

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On 25 February 2013 at 03:57
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46 Points Posted on 25 February 2013

Thanks for the reply. Need further calrification.

My wife is not co-owner of the property. She is just the co-borrower on the Loan application. The account I pay interest is from my account in which I receive the rental income.

So from what read here, since my wife is not the co-owner of the property, I can fully deduct the interest payments from taxes. Is this correct?? pleae clarify.

Thanks in advance

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On 25 February 2013 at 17:33
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you can claim 100% deduction of the interest paid u/s 24b

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On 25 February 2013 at 20:13

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