Tax rebate under section 24

Dear Sir,

Hope you are doing well !!

Tax benefits on a joint home loan are available to all the joint owners. It’s pertinent to note that ‘ownership’ in the property is a pre-requisite to availing any tax benefits against the property. You may have taken the loan jointly, but unless you are an owner in the property – you may not be entitled to the tax benefits. 

In certain cases, a person merely joins another immediate family member (father, son or spouse), to enhance the loan amount eligibility, without having any share in the property purchased. In such cases, the co-borrower, who is not a joint owner of the property, cannot claim the tax benefits on such home loans.

1. You will get the tax benefits on the home loan, in the ratio in which you are servicing the home loan.

2. Yes, it is correct.

3. The interim budget 2019 increased the number of houses you can claim as self-occupied to two. If you own more than two houses, you can claim any two of them as self-occupied and you do not have to pay tax on notional rent for them.

If there is no ratio specified then it will be divided equally. Your calculation and understanding is correct.

Yes you should file ITR with notional rent.

Hi,

- In case of self-occupied property, maximum interest u/s 24 allowed is Rs. 2 lacs. In your case, benefit per head allowed is Rs.1,65,554 incl. pre-construction period interest.

- As per the budget proposals from A.Y. 2020-21, second self-occupied house will also not be covered under notional rent definition.

Thanks

No the pre construction interest would be distributed between you and your wife and it won't be per head. How can you claim more interest then what you have paid.

Yes since you got occupancy in March 2019 your interest calculation would be 130833 +69411/2 which would be within 2 lakh cap.

No since the budget made the amendment that a person can hold two house as self occupied so you don't need to calculate notional rent for your second house.

You can even claim principal repayment as deduction under 80C.

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Thank you.

Hello Sir,

1. It would be distributed between you and your wife in the sharing ratio.

It can not be  Rs. 69411.0 per head as it is total pre construction interest.

2. Yes, you can claim rebate u/s 24. It would be Rs. 1,65,554 (130833+69411/2) per head within the limit of 2 lakh.

3. Notional rent' was taken as income on the second house property and hence was included in the tax bracket. But with the latest proposal in the Interim Budget 2019, individuals will not have to shell-out any tax on up to two self-occupied houses.

So, there is no requirement to fill the details of notional rent.

Hi

1.Yes pre-construction interest can be claimed and in absence of any ratio,it is to be claimed equally.

2.Yes you can claim the rebate under sec 24 for AY 2019-20.It will be 165554 per head,subject to the maximum limit of 2 lacs .

3.No.

Hope it helps