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

AI Summary

Husband paying EMIs can claim full tax deductions under Sections 24 and 80C for jointly owned property. A couple purchased a property jointly, with a 50:50 share, for 70 lakhs, and took a home loan of 42 lakhs. The husband is solely paying the EMIs. The query is whether the husband can claim full tax deductions under sections 24 and 80C, or if deductions should be shared equally, with the husband debiting the wife's account for her share. An expert suggests that the husband, who is paying the EMI, should claim the full deduction. Another contributor agrees with this expert opinion.