Joint mortgage loan - single ownership, interest deduction

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KG

Manager

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

Replies (3)

Guest

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/

KG

Manager

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