Hi,
If someone has borrowed35 Lacs for acquiring a house property jointly with his wife and repayments are to be made through joint account, please let me know if both the individual and the wife will be eligible for a max deduction of150,000 each or75,000 each for the interest part (if share is defined as 50:50) as I get almost equally divided opinions on this subject
i guess they are co owners of the house. as per sec 26, there share of income as well as deduction will be divided among them in the specified ratio which is 50:50 in this case.
So the deduction will be 75000 each at max.
please mention if there is any case law for the same.
u calculate the HP income ...give the deduction and bifurcate it afterfards among the 2..i would revert in case i get a case law fr the same
[ Deductions from income from house property.
24. Income chargeable under the head “Income from house property” shall be computed after making the following deductions, namely:—
(a) a sum equal to thirty per cent of the annual value;
(b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital
As can be read, the section allows deduction to an assessee. Hence both Husband and Wife will be
allowed a deduction of Rs. 150000.
Income tax has not made any distinction in single ownership and co-ownership. in this section, the word used is assessee. Therefore, it can be interpreted that the deduction of Rs. 150000/- is allowed to both husband and wife..........
I think both are eligible for exemption upto Rs. 1,50,000/- respectively u/s 24(b).
And the said deduction can exceed Rs. 1,50,000/-., with no upper limit (Though limited to the amount paid as Interest), If the said HP is rented.
Just Divide equally the Total Interest amount paid in the applicable F.Y as per Bank Certificate, and follow the above provision.
both will claim 1.5 lakhs each..
BOTH ARE ELIGIBLE TO CLAIM 150000
Section 26 of the I T Act,1961 says that what income would be charged as an income if there are co-ownership in the house, the same shall be applied also for deduction to be claimed U/s.24(b). Therefor Husbund & his spouse will get the benefit only of Rs.75,000/- each against their individual income, if share in the property is in equal proportion between 2 individuals.
| Originally posted by : nimish solanki | ||
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BOTH ARE ELIGIBLE TO CLAIM 150000 |
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Refer section 26
both are eligible for deduction of 75000 each equally.
Humour :
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The two different opinions are also going towards 50:50.
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Reality :
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If there are three co-owners; each will get the exemption of Rs.1,50,000/- for self occupied property.
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The concept :
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Ask yourself to whom the deduction is being given : To a House or To an Assessee ?
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You will find the correct answer immediately.
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