Home loan tax benefit

Hi

In such case only your wife will get the benefit.

To claim the benefit for both of you, pay EMIs from both accounts. You may transfer such amount to your account from your wife's account and then pay.

Hi,

In order to claim the benefits by both of you, EMI has to be paid by both of you. If this is not possible, you can transfer the amount to your wife's account for your part of EMI

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Yes you can use benefits of income tax exemption as co borrower and co honor of property , for this please transfer your share of emi to wife's account every month or when ever possible to prove you have paid EMI

yes you can

there is two option

one is to pay emi on regular basis

second treat EMI paid by your Wife as your Liability and pay later to her or pay advance to her and treat your asset with her

The best way is to pay 50% EMI from your account only.

But if you want to make the payment from your wife's account only, then either pay it monthly/annually or show it as a loan to you by your wife.

In order to create a robust case, it is advisable to transfer the EMI before schedule date to your wife. Also mentioned in the narration that this is for part share of EMI.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Hi,

Both of you can claim the principal and interest benefit. However, you will have to contribute to the EMI, proportionately. You can either transfer every month or make an annual transfer, before the year ends.

The interest and principal can be equally split between the two of you. Please note that the limit prescribed for claiming benefit of principal and interest is for each person. That is, your wife and you can both claim the deduction of interest of Rs. 2 lakhs and principal of Rs. 1.5 lakhs. However, this is subject to the actual interest and principal paid.

Trust this clarifies.

Regards,

Keerthiga Padmanabhan

M.Com., CA, LL.B

Hi,

Deduction for Housing Loan Principal and Interest is available to both of you since you both are joint owners and also the loan is in Joint name. You can claim the Tax benefits even though the EMI is paid from wife's account only.

Though it is not mandatory to transfer your share of EMI to wife's account, it is advisable to do so since you can explain that you are also paying the Housing Loan in case your case is picked up for Scrutiny. Alternatively, you can open a Joint Account in your and your wife's name and make EMI Payments from that account.

Dear Tax Payer,

There are two components in your repayment of your housing loan- 1. Interes 2. Principal

1. Interest - Section 24(b) of the IT Act - This section does not mandate payment of actual interest. It mandates the following only;

"no deduction shall be made under u/s 24(b) unless the assessee furnishes a certificate, from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by the assessee for the purpose of such acquisition or construction of the property".

Hence, the actual transfer of interest component to your wife's account is not mandatory. Only, your name shall appear in the HL certificate provided by the bank.

2. Principal component.

Actual repayment of principal from your income is a prerequisite to claim deduction for principal repayment of HL u/s 80C. There is no special method being prescribed. Hence, you can transfer a lump sum amount which is equal to the principal component to your wife's account. This has to be done on or before 31 March of every year.

Regards,

CA. Rajeev P T

Hello,

You both can very well claim the benefit of Interest paid on Hsg Loan. It is mandatory to transfer your share of EMI. But on a safer you better do it to avoid harassment of the Assessing Officer and in turn incurring cost on hiring a professional to fight your case.

You can very well transfer the entire sum once a year.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, FCA, LLB, CERT. FAFP