Deduction - interest on housing loan

[madhavvan n]

X is employed and co has provided quarters to him he has purchased a house and taken loan for the same the house is let out and rent is received by his wife who files her return and does not claim any deduction. can X claim interest on housing loan as per provisions of sec 24 and repayment of housing loan in his return of income

[rishi mohan]

In the above case X cannot claim deduction for the interest paid. The deduction can only be claimed by the owner of the property. If in case the property is in co-ownership, then the deduction for interest can be claimed in the ratios defined.

AI Summary

Employee Can't Claim Housing Loan Interest Deduction; Only Property Owners Eligible Under Section 24. Ownership Ratio Matters. X, who is employed and provided with company quarters, has purchased a house with a loan. The house is let out, and the rent is received by X's wife, who files her tax return without claiming any deductions. X inquires if he can claim interest on the housing loan under Section 24 and repayment of the housing loan in his tax return. The response clarifies that X cannot claim the deduction for interest paid, as only the property owner can do so. If the property is co-owned, deductions can be claimed according to the ownership ratios.