Tax benefit under home loan

Hi,

Hope you are doing well !

Yes, you can take the benefit because entire EMI is paid by you only. You can claim all the following deductions:

You can take tax deduction of the whole interest amount under Section 24.

Also, the deduction to claim principal repayment is available for up to Rs. 1,50,000 within the overall limit of Section 80C .

Further, Section 80EE allows tax benefits for first time home buyers. Income tax deduction can be claimed on home loan interest towards your first house property. The deduction allowed under this section is for interest paid on home loan up to maximum Rs 50,000 per financial year. You can continue to claim this deduction until you have fully repaid the loan.

This deduction is over and above the Rs 2 lakhs limit under section 24 of the income tax act.

Thanks & Regards,

Payal Chhajed

Dear Sir,

-As the property is 100% financed by you and your wife is the only legal owner and co-borrower with you just for loan eligibility, rental income will be taxable in your hands and not in the hands of wife as per section 27.

- Benefit of interest and principal is available to the person in whose hand income from house property is taxable so you can claim the benefit alongwith declaration of above income in your hands.

- Even though she is filing return but rental income will be taxable in your hands.

Thanks

Coming to your second question :

As per Section 27 there are some persons who are not the legal owners of a property but still deemed to be the owners.

No doubt she is filing the return but rental income will be taxable in your hands and not in her hands.

Thanks & Regards,

Payal Chhajed

Hi Ashwini

There seems lot of complexities here.

According to my opinion, the best option would be:

1. Claim home loan repayment benefits for interest and principal yourself.

2. Show rental income of the property in your ITR only.

You can't claim the benefits while your wife is showing rental income. Benefits can only be claimed when corresponding income is shown under house pricey head.

Hi,

1.yes, you can claim the tax benefit on interest and principal amount.

2. No. It is advisable that you show tge rental income in your hands. You are claiming 100% benefits and so the income should also be taxed 100% in your hands.

Regards,

Nikhil.

1.you are paying EMI out of your income so being co borrower eligible for int deduction up to 2 lac

2. Being the co owner your wife can show rental income in her itr

Hi,

As per Income Tax Act, if the property is co-owned by two people both the assessee's can claim the amount of interest and principal repayment in their respective ITR's to the extent of their share in the property.

As the loan is in the name of both of you, you can claim the interest and principal repayment to the extent of your share as you have contributed in construction cost. If you are claiming interest then you will also have to add the rent to your income to the extent of your share.

Hope this resolves your queries!

Dear Ashwini Sir,

1. You can claim the tax benefit on interest as well as principal

2. Even through she is filing return but rental income will be taxable in your hands.

Warm Regards,

Karishma Chhajer

Hi

1.yes you can claim home loan benefit for both interest and principal repayment.

2.Its ok .show the property type as let out, declare rent income and claim tax benefit.