Repay home loan from spouse income

As she is not (Co-) owner of the property and not co-borrower of the loan, so she cannot claim interest deduction u/s. 24b. Treat the amount as gift/loan from your wife, and you continue to get the deduction under your ITR.

Since your wife is not co-owner therefore deduction of Interest payment is not available to her.

the best is just treat the amount as gift from spouse accordingly it will not chargeable to tax in your hand.

Under which section the money has to be treated as gift?

I am already taxed at 20%

Will it be a problem?

Gift u/s 56(1)(v) is exempt if received from relative (spouse is also comes under the defination of relative)

Doesn't Gift u/s 56(2)(vii) says there is a limit of 50000 can only be taken as gift?

In my case I receive more than 50,000. How does it impact the declaration or liability from my side?

The gift received for more than 50,000 is taxable under the head income from other sources, but in your case the gift is received from your wife and wife is covered under the definition of relative so it is not taxable.section 56 (2)(vii) under the Income tax Act,1961.

Sec 56 (2)(vii) does not have any limit on gifts received from relatives . Limit of rs.50000 is only for persons other than relatives.  

And yes. Interest deduction on loan will not available to your wife as she is neither co owner or co applicant in this case. 

Bestway is to treat the amount as gift from your wife even if it exceeds rs. 50000.

Thanks a lot Experts!!