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Question on housing loan

Tax queries 1263 views 5 replies

Raman

Salaried

78 Points Joined December 2007

Hi Gurus,
Can you through some light in this situation.

Facts

1) Housing Loan taken by two brothers jointly in ratio of 50:50 during PY - 2008-09.
2) Possession for property taken in PY - 2008-09 itself.
3) Ownership is also 50:50
4) Loan repayment made by one brother only as of now. Starting Apr-09 both the brothers will repay the loan jointly.

Question - For PY - 2008-09

A) Whether both the brothers can claim interest deduction in the ratio of 50:50?
B) Or only the person paying is eligible for deduction?

Pls clarify.
TIA

Replies (5)

CA Annie

Chartered Accountant

747 Points Joined April 2008

Yes both of them can claim the interest paid as the loan has been taken by both of them jointly

CA MOHIT VAATS

Consultant

554 Points Joined October 2007

Both can claim the deduction...

CA Rachit K Patel

Chartered Accountant

1503 Points Joined August 2008

bith can claim the deduction they have to obtain a certificate on that part.

CA RAMESH KUMAR AHUJA

CA DISA LLB

5452 Points Joined July 2008

As far as Interest on H.Loan is concerned, the deduction is available on accrual basis. In case both the brothers recognise the liability on account of interest or principally decide to repay the loan the deduction may be claimed in that agreed ratio. However, the repayment of loan will qualify for deduction u/s 80C by the person who is actually paying the loan. In my opinion, the deduction for AY 2009-10 relating to PY 2008-09 will be available to the person(brother) who is repaying the loan.