Query on Income tax

Tax queries 1066 views 4 replies

rajeshkn

CEO

66 Points Posted on 01 March 2009

Dear Sir / Madam,

Me & my wife have jointly taken a housing loan & have been showing the 1.5 lakh allowable housing loan interest on both our incomes.

In the same on my income, I show a deduction of 1.50 lakhs & she shows a deduction of 1.50 lakhs on her gross income. Saying that, the cumulative interest paid to the bank is above 3.0 lakhs.

We have been doing this for the last 2 years as advised by our auditor BUt suddenly this doubt of whether both of us can show this deduction was raised by a banker, whom we had approached for a home loan take over.

Can someone clarify the law, pls.

Regards,

Rajesh

Replies (4)

Abhinav Agarwal

M.Com C.A SAP Consultant

814 Points Posted on 02 March 2009

Sir,

If you have taken Home Loan in Joint Name and the proportion if loan if 50:50, then you would have submitted Form 12C with Income Tax Department, either personally or thru bank. This form clearly states the proportion of deduction you & your wife will claim u/s 24 & 80C.

Thus if this is the case, you both can claim deduction under above sections.

CA. Ashok shah

CHARTERED ACCOUNTANT

333 Points Posted on 02 March 2009

Yes, if the House Property (SOP) is owned by more than one person, all co-owners can claim interest u/s.24 (b) in respect of their share of interest payable on joint home loan taken by them subject to limit of Rs.150000/- for each co-owner.

CA Chintan Parikh

Practice

290 Points Posted on 02 March 2009

Originally posted by :Abhinav Agarwal
"	Sir, If you have taken Home Loan in Joint Name and the proportion if loan if 50:50, then you would have submitted Form 12C with Income Tax Department, either personally or thru bank. This form clearly states the proportion of deduction you & your wife will claim u/s 24 & 80C. Thus if this is the case, you both can claim deduction under above sections.	"