- If the EMI is paid from your own sources of income then it would be allowed.
Deduction for interest on house property
Myself and my wife are retired both in our 60s. We purchased a flat in September 2019 and have a joint ownership. We used our savings for a part of the cost. For the balance we along with our son, who is an NRI approached the financial institution for housing loan. The FI agreed and gave us NRI housing loan with My NRI son as the first applicant, me & my wife being 2nd & 3rd, though his name is not in the registry. My son opened a NRO joint account with us and the EMI is debited to this account. My question is, for financial year 2019-20 whether myself and my wife can claim deduction for interest & principle in our tax returns?
Asked 5 years ago in Income Tax
Hi
If you are paying EMI for the housing loan, it has two components – interest payment and principal repayment. The interest portion of the EMI paid for the year can be claimed as a deduction from your total income up to a maximum of Rs 2 lakh under Section
Principal portion of the EMI paid for the year is allowed as deduction under Section 80C. The maximum amount that can be claimed is up to Rs 1.5 lakh. But to claim this deduction, the house property should not be sold within 5 years of possession
Yes, You can claim deduction if you are a co-borrower
Dear Sir,
Hope you are doing well !!
Yes, both of you will get the deduction for interest & principle in your tax returns provided EMI is paid from your own sources of income.
Hello, i read the conditions for availing interest on housing loan. No where it says that it needs to be paid out of our sources of income. If you could copy paste the said words from the Income Tax Act.
Asked 5 years ago
- Beneficial owner of the house property is considered under the income tax act.
Hello,
Being co-owner of the property as well as co-applicant for the housing loan, you are eligible for the deduction of interest and principal repayment.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Hi,
Yes, you and your wife can claim interest and principal deduction. However you need to show the money received from your son as a gift in your and your wife's return.
There is no tax on receiving gift from your son.
We can help you in filing return.
deduction u/s 80C are purely investment based deduction. Whosoever is making payment will only get the deduction.
Thus, its advisable to show the money received from your son as a gift
Are you paying interest or principal?
If yes you can claim deduction because for claiming deduction one needs to be a owner of house.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hi
The owner of the property can claim tax benefits. If the spouse is a co-borrower, they can also file for tax deductions. In the case of a joint loan, both parties can claim for their share of the loan they pay.
Dear Sir,
To claim above deductions, the person must be the beneficial owner of the house property.
However, you can show the money received from your son as a gift.
We may assist you in entire procedure.
no sir very contradiction registry in your name & emi debited from son account how can you claim int deduction you can not claim it
Ask a Chartered Accountant
Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
Ask a CA