Yes u can do so.
Tax benefit claim on house loan u/s 24 and u/s 80(C)
I have taken house loan and house loan for renovation (on same property) seperately in FY 2016-17 from same bank. The loans are granted in May 2016 and I have taken property possession in July 2016 after renovation work. I am living with my family there. Can I claim the interest paid on both the house loans (Actual Home loan and home loan for renovation ) U/s 24 subjected that combines they are not exceeding 2 lakh. Also can I claim the principles paid for both the loans combined U/s 80(C).
Asked 8 years ago in Income Tax
Hi,
You can get the interest deuction with respect to both the loans under section 24 subject to maximum limit of INR 2 lakhs.
However, you can only claim principal repayment of original loan for the purpose of section 80C. Deduction u/s 80C cannot be claimed for principal repayment of loan taken for rennovation purpose.
Please feel free to call/ revert in case of any doubts
Thanks and regards
Abhishek Dugar
CA CS B.Com
The home loan and renovation loan has been combinely taken on my and spouse name. The EMI for home loan is deducted 50-50% form both account and hence we are claiming 50-50% of principal and interest on home loan on our IT return seperately. Further Home loan (renovation) has been taken again on my and spouse name and EMI is deducted from my account only but half of the amount is regularly transfer (before deduction of EMI) from my spouse from her account to mine account as 50% payment towards renovation home loan. We are living together in the same property and Hindu Family. Can my spouse claim the 50% tax benefit towards interest paid on renovation loan as she is contributing towards the EMI payment (via 50 EMI transfer to my account regularly towards EMI payment) and loan is also on mine and her combined name.
Asked 8 years ago
Yes, she can if property is also jointly owned by you and your wife.
Though, even if property is not in joint name, you can take agressive position and claim deduction based on the concept of deemed ownership, as your wife is also paying EMI. It's a litigative position.
Thx Dear Abhishek for such wonderful replies. One last doubt. The total Interest combinely on house loan and house loan (renovation) is coming totally 224000 and as me and my spouse are claiming 50-50% we are claiming 112000 seperately. Is it fine or to accommodate extra 24000 we need to go for U/s 80ee ? Because seperately and individually it is less than 2 lakh but combinely exceeding 2 lakh ? Please help.
Asked 8 years ago
Btw the property is jointly owned by me and spouse
Asked 8 years ago
Your Welcome.
You both can claim interest amount of INR 112000 under section 24. You don't need to go for 80EE.
Trust this suffice your requirement adequately!
Query specifically asked to Mr. Abhishek.
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