Yes, your son in law and daughter can claim the benefits in the ratio of payment of EMI
Ratio of tax rebate claim by joint home loan borrowers
We are 3 joint owners of house property with undivided share at 50:25:25. We all 3 are joint home loan borrowers. Myself being senior citizen ( 25% ownership) is not paying any portion of EMI. Other two ( my son in law with 50% and my daughter with 25% ) are paying ENTIRE EMI at 60:40 ratio. ( S in law=Rs.30000 & daughter=20000). My question is as follows. Can my son in law and daughter claim tax rebate under 80C and Sec 24 ( Principal and int on home loan ) @ 60:40 ratio at which the entire EMI is being paid by them EVENTHOUGH their ownership ratio is 50:25 whereas I am not paying EMI nor claiming rebate. Excluding mine, their ownership ratio comes to 75% only. I read in Google search that it can be claimed either at ownership ratio or EMI contribution ratio.
Asked 5 years ago in Income Tax
If rebate is to be claimed at ownership ratio it results in only 50:25 even though other 2 are paying entire EMI. So, can the claim at EMI contribution ratio at 60:40 by them be legal ?
Asked 5 years ago
Dear Sir,
Hope you are doing well !!
Yes, it is legal.
You can claim the same on the basis of EMI contribution ratio.
Hi
Yes they can claim tax rebates in rate of EMI contribution
Dear Mam,
As per the provisions of income tax, if you want to claim deduction for home loan there are two conditions to be fulfilled. Firstly, home loan should be taken by owner of property and secondly, the applicant for the loan will be eligible for deduction u/s 80c and sec 24.
If you fulfil both the condition you will be eligible for deduction.
Thanks & Regards
Shiv Kumar Agarwal
Hello Sir
Yes ur son i law & daughter claim tax rebates in rate of EMI contribution
- Under Income tax, owner is a person who put his money for purchase of the property. In your case, your son in law and daughter are owners of the property though you are also registered co-owner of the property. They can claim benefit of deductions in the ratio of their investment.
Claim at EMI contribution ratio is not allowed. They have to claim the benefit in the ownership ration.
Sir
How can a person be an owner of the property without any payments. In tax the real owner is the one who invest in the property.
In your transaction is it the case that they are making payments and you will settle with them separately. Or is it the case tha they have gifted 25 percent share to you.
It would be a difficult scenario to justify that they pay the EMI without being an owner. The deduction should be restricted to ones share
If you read both section i.e. 24 and 80C it just says owner will get the amount paid as deduction upto certain limit.
Thus, it only talks about your payment and not puts any restriction that deduction would be available in ownership ratio.
Thus, one can take deduction of any amount paid by him/ her.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hello,
Yes, your son in law and daughter can claim the tax benefits for principal and interest repayment in the ratio of payment of EMI made by them.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
You can claim the same on the basis of EMI contribution ratio.
Hi
Yes Rebates will be claim in EMI contribution ratio.
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