Tax benefit u/s 24b

This discussion clarifies how interest paid on a joint home loan can be claimed as a tax deduction under Section 24b of the Income Tax Act. While the deduction is capped at the actual interest paid or Rs. 2 lakhs per person, the claim must be in proportion to the ownership of the property. Therefore, a husband and wife cannot arbitrarily divide the interest to maximise one person's tax benefit beyond their actual payment or ownership share.