Query on Section 24(b) and Sec 80C

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Samir

ACA

113 Points Posted on 08 July 2011

I have a query with regards to claiming Housing Loan exemption u/s 80C and Sec 24(b):

F.Y 2010-2011

There are 3 Co-owners and Co-borrowers of a Flat.

Out of which EMI is being deducted only from 1^st Holders Bank account.

Now can all of the 3, claim exemption u/s 80C and Sec 24(b) in proportion 1/3^rd Each.

F.Y 2011-2012

EMI is still being deducted only from 1^st Holders Bank account.

Further all the 3 Pre-paid the Housing Loan in Part: Rs. 1,00,000/- each

Now can all of the 3, claim exemption u/s 80C - Rs. 1,00,000/- each

Please can anyone solve this Query?

Thanks in advance

Replies (3)

Sagar Zankhariya

Audit Assist.

278 Points Posted on 09 July 2011

Dear Samir

As per provision of I T Act u/s 24(b) maximum exemption allowed Rs.1,50,000 for interest payment of Loan amount.

& As per provision of I T Act u/s 80C to 80CCE maximum deduction allowed Rs. 1,00,000 for Principal payment of Loan amount.

Thus, as per above provision which u interest paid of loan divided three owners & get exemption u/s 24(b)

Principal paid of Loan divided three owners & get deduction u/s 80C to 80CCE.

Paras

Mcom CA Final

122 Points Posted on 09 July 2011

yes , interest u/s 24(b) and principal u/s 80 c

U S Sharma

glidor@gmail.com

21068 Points Posted on 09 July 2011

Originally posted by : Samir

I have a query with regards to claiming Housing Loan exemption u/s 80C and Sec 24(b):

F.Y 2010-2011
There are 3 Co-owners and Co-borrowers of a Flat.
Out of which EMI is being deducted only from 1st Holders Bank account.
Now can all of the 3, claim exemption u/s 80C and Sec 24(b) in proportion 1/3rd Each.
- Not possible to claim 80C exemption, for non payees,

- however interest accured is to be claimed by all three,

- 80C deductions are available on payment basis from gross taxable income, if any one has paid the amount, then only the payee is eligible to claim 80C deduction.

F.Y 2011-2012
EMI is still being deducted only from 1st Holders Bank account.

Further all the 3 Pre-paid the Housing Loan in Part:1,00,000/- each
Now can all of the 3, claim exemption u/s 80C -1,00,000/- each

- Here the pre payment of housing loan @ 1 L each qualify for 80C

- 1st holder will not be in position to claim the EMI quantam of principal as it exceeds the 80C limit.

- 24(b) is still available on accural/payment basis

Please can anyone solve this Query?
Thanks in advance