Deduction of home loan in joint Name

[CABIJENDERKUMAR BANSAL]

Dear All

Husband and wife purchased property in joint name with 50:50 share for ₹ 70 lacs. Home loan of ₹ 42 lacs was also availed in Joint names.

remaining Consideration was also paid in 50:50 i.e. 14 lacs each total 28 Lacs.

After that EMI is being paid from individual account of Husband only.

My query is : How to avail deduction under section 24 of Interest and 80C of principal amount paid.

a) Full deduction to husband only who is actually paying the EMI. OR

b) deduction of interest and principal to be taken equally by both of them and husband will Debit wife account by the amount of 50% of total EMI paid i.e. in the form of loan to wife.

Thanks

[DR.MARIAPPAN GOVINDARAJAN]

In my view full deduction to husband only who is actually paying the EMI. If the EMI is paid jointly both by the husband and wife equally then the deduction is proportionate to both the wife and the husband.

[YAGAY andSUN]

We endorse the view of the expert in this matter.

AI Summary

Deduction for home loan interest: payer of EMIs may claim full deduction; joint payers share deduction proportionately. Entitlement to deductions for interest and principal on a jointly titled home loan follows payment attribution: the co-owner who actually pays EMIs may claim the full deduction for amounts they pay, whereas when EMIs are paid jointly and equally deductions must be allocated between co-owners in proportion to their payments.