Hi,
I stay in Mumbai. I have recently purchased my first flat (in October 2011) in Mumbai with a loan amount of Rs 64 lakh. The flat is jointly owned by my wife and me, although the sale deed does not mention the proportion of the ownership. The loan is a joint loan with my wife and is paid through my salary account which again is a joint account with my wife where my wife contributes Rs 25000 every month through ECS. The lending bank is the same as the bank where I have a salary account. I am myself staying in the flat in Mumbai provided by my company. I have given my purchased flat on 11 months lease for a monthly rent of Rs 31,000, with effect from May 2012, which again is credited electronically to my salary account. My wife has been claiming HRA from her employer till now. I have got a provisional interest certificate from my bank advising that for 2012-13, the Principal component of my loan is Rs 1,036,53 and Interest component is Rs 6,63,099. Now I need to submit to my employer my proposed investments for 2012-13 for the tax purpose. Can my wife and me both claim tax deductions Section 24(b) of the Income Tax Act for the whole amount of the interest component (50% each and not restricted to Rs 1,50,000 each since the flat has been given out on rent) net of the income from housing (as 50% of the rent received for each of us)?
Thanks in advance
CAclubindia
