Benefit of building loan interest & installment payment

[S.C. WADHWA]

Dear Expert,

One employee has purchased a house jointly with his wife after getting loan from bank.
both are paying 50% of bank interest and 50% loan repayment installment. Husband
has taken his wife portion of house on rent because he getting HRA from his company.
Income of both are taxable.
Now my query is that whether his wife will get benefit of building loan interest and loan
repayment installment in her return of income. She will also include rental income after
30% abatement in her income. Please give your expert reply. Regards, WADHWA

[Ganeshan Kalyani]

Sir, both husband and wife will be able to claim the loan payment equally provided they both submit a declaration letter to their respective employer. Further I did not understand how wife will let out the property to her husband. Moreover if the house is self occupied then in my view it cannot to considered as let out property. Thanks.

AI Summary

Co-ownership deduction rights: spouses sharing loan payments can each claim proportional tax benefit if properly declared and documented. When spouses jointly own a house and each pays half the loan interest and installments, each may claim tax benefit proportionate to actual payments provided they document contributions and, where applicable, submit a declaration to their employer. Rental received from one co-owner is taxable as the receiver's income with a 30 percent abatement; a house treated as self-occupied by the occupier is not treated as let out for that occupier.