Tax benefits on housing loan

these dedcutions are available on actual payment basis, the deduction would go in the hands of the assesee who has actualy paid the same, 

in case the payment is made from a joint bank account, then it can be claimed by 1st holder (as per bank name sequence) in general or in proportionate ratio ( if such ratio mandate is given to bank) 

Hello U S Sharma,

In case of interest on Housing Loan deduction is allowed on the interest incurred, I am pasting the original text below. Pls clarify.

"In respect of self-occupied residential house property, interest incurred on capital borrowed for the purpose of acquisition or construction of house property shall be allowed as deduction up to Rs. 2 lakhs."

Thanks Mr. Sharma.

Just wanted to clarify one more thing - I have submitted the principal and loan certificate to my employer. The account name is joint, my mother being the co-borrower. My name is first in sequence.

They are not ready to accept a written declaration from my mother stating that she has no income, nor is claiming any benefit.

So since I cannot do anything now, will I be able to claim 100% benefit when I file for tax returns later in the year? Can I get my money back then?

Thanks!

@ Prerna: You are right, as per sec 26, if the property is owned by two or more persons (co-owners), each of them shall be entitled to the benefit of deduction u/s 24(b) and 80C as if each of them are individually entitled to the benefits provided the respective shares of co-owners are known. So the company cannot restrict to 50% in this case.

For more details, refer the link: Property owned by co-owners [Sec. 26]

https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&ved=0ahUKEwiTkNuw0ezKAhVOGY4KHZhfAVcQFggsMAI&url=http%3A%2F%2Fwww.incometaxindia.gov.in%2Ftutorials%2Fincome-from-house-property-practical.pdf&usg=AFQjCNGCWBUDNjSGsQ_h7JKKXB7HDvLL7w&sig2=_jPTqgcl6byk2xftVFnNhQ&cad=rja

Regarding, interest deduction, I agree with Sayantan (i.e. it can be claimed on accrual basis not on payment basis)

Since the deduction is available to each co owner it is sufficient  that you prove it by way of your sale deed.

Your company cannot restrict the deduction to 50% since deduction is allowable to a co-owner and not to a co-applicant of the loan. pertaining to sec 80 c and sec 24.

in your case since your mother has no taxable income she may not be in a position to exhaust the advantage available  to her under these sections.

More over interest could be claimed even if it is not paid in the previous year

An Allahabad High Court ruled that interest would be allowed as a deduction even if the same is not actually paid by the assessee. -

Finally the Hon’ble judges of the High Court held that deduction in respect of interest o the borrowed capital is permissible on accrual basis as per Section 24 of the Income-tax Act, 1961.

accured and paid does not differ the soul of the rule, 

say one co owner claims on acural basis and in next year another owner ( other than the  person who claimed it in previous year) opt for payment, then how the department would allow or disallow?

so the person who is paying the interest or loan, is eligible to claim it, on payment basis (accural basis is just an accounting phase to claim it in the year of accural) 

if agreed upon by the HRD of your company 

you can submit an affidavit stating that the interest and capital both are paid from your taxable income to the tune of 100% 

as you have dependent mother without any income, so you are paying 100% instead of proportionate share. 

i assume the company would accept the affidavit.