Hi,
There is a coowned property and a housing loan is availed on the same jointly - this being the case :
a. If the repayment is made by only one of the coowner will he be eligible to claim dedcution on principal repayment fully or the same will be restricted to his share in the property.
b. What if the housing loan is avialed by only one of the co owner on the property and he/she repays the loan. Will he/she be eligible for dedcution for principal repayment fully?.
Dear RSK070,
In case of a jointly owned property and a loan is availed jointly on it, the assessee can claim for deduction on the loan (both principle and amount) on his/ her share of ownership in the said house.
As per sec 80C, deduction for principle amount can be claimed subject to a maximum of Rs. 1 Lacs.
As per sec 24, deduction for the interest can be availed subject to a maximum of Rs. 1.5 Lacs.
However, as per Sec 80EE, if the assessee buys his/ her first house, then, an additional deduction of Rs. 1 Lacs on interest can be availed, if the loan amount is availed between 01.04.2013 to 31.03.2014 and does not exceed Rs. 25 and the value of house purchased does not exceed Rs. 40 Lacs w.e.f. AY 2014- 15, and can be extended to AY 2015- 16, if the said limit is not exhausted.
Pallav Agarwal
pagarwal.icai @ gmail.com
CAclubindia
