Jointly owned sop-can we claim int on loan>150000 ?

Hi Abhishek,

                           It depends upon the ratio in which Mr & Mrs X are paying their EMI's. So, if they both are equally contributing, then yes, both can avail tax equal tax benefit, as explained in the example

Regards,

Zim

Yes Abhishek, both of them will get the benefit u/s 24b upto Rs.150000/- individually as well as Rs.100000/- u/s 80C individually, it all depends upon the ratio in which they are paying EMI, if the EMI is debited from any one account and if the other person wants to take the benefit of the same then they should enter in to Mutual agreement between them the same i am providing to  you for your refrence below:-

Standard draft for home loan sharing agreement

This agreement is made on ____ day of _________ 2003 between Mr. __________________  having a place of residence at ____________________(hereinafter referred to as the First Party) and Ms.  _____________________  having a place of residence at ____________________(hereinafter referred to as the Second Party) (the First Party   and the Second Party jointly being referred to as Parties hereinafter).

Whereas the Parties have jointly bought a house property being ________________

_______________________________ (hereinafter referred to as the House Property) vide an agreement dated _________ entered into with _____________________ (hereinafter referred to as the Purchase Agreement).

Whereas the Parties have jointly taken a loan of Rs. 80 from ABC Bank  (Bank) vide loan agreement dated __________________ (hereinafter referred to as the Loan)

Whereas the Parties are desirous of laying down their mutual rights and obligations.

Now this agreement witnesses as under:

1. The beneficial ownership of House Property and the manner of funding is as is as under:

Cost of the House Property  = Rs 100                                         

2. Each party acknowledges the share of the other party in the House Property and        acknowledges receipt of the own contribution made by the other party.

3. The First  party agrees to pay the installment amount due on the Loan  as per schedule 1 enclosed and the Second Party agrees and confirms that it will duly reimburse its share of the installment on the same due date to the First Party. The First Party will be entitled to claim interest @ 18% p.a on any delays beyond 5 days from the due date for receipt of this reimbursement. The First Party will be fully liable for any delay in payment of  installment to the Bank provided the Second Party has paid its share of the installment in time. Otherwise Each party will be liable to bear any interest/cost/penalty payable to the bank prorata to the extent of any delay by either party.

4. Both Parties agree to share any income that arises from the House Property in proportion of their share in the ownership.

5. Both Parties agree to claim tax benefits on repayment of the Loan only in proportion to their  share of the Loan.

6. Both Parties indemnify each other against any cost/expenses/penalty/interest that may be borne by the House Property/the other party due to the default of one of the Parties.

As a token of their acceptance to the above both Parties have signed hereunder:

_______________________                               _____________________

(First Party)                                                      (Second Party)

Simply ask both the co-owners to pay half the amount of EMI each.  If that can be arranged, then, there should be no problem.  Section 27 provides for deduction of 150000 in each co-owner's hands.