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

Tax Benefits on Joint Home Loans: Clarification Needed on Spousal Rental Income and Self-Occupied Property Rules. An individual inquired about tax benefits related to a jointly purchased house with his spouse. Both parties pay equal shares of the loan interest and installments. The husband rents his wife's portion of the house, receiving House Rent Allowance (HRA) from his employer. The query concerns whether the wife can claim tax benefits on the loan interest and installment payments and include rental income with a 30% abatement. A response clarified that both can claim loan payments equally if they declare to their employers. However, there's confusion about renting to a spouse and whether a self-occupied house can be considered let out.