Benefit of interest on house loan

[Andrew Antonio Fernandez]

I had availed of a housing loan jointly with my wife and are staying in it the so constructed house. But the tax benefits were claimed only by me till now. The loan is nearly over and we now plan to take another loan in my wife's name alone for purchasing another house. This we plan to give on rent. Will she be entitled to any income tax benefit on the loan repayment/interest or on the house rent income?

AI Summary

Couple Can Claim Tax Benefits on Separate Housing Loans; Deduct Rental Property Interest from Income Under Tax Rules. A person inquired about tax benefits related to housing loans. They had a joint loan with their spouse for their current house, but only one claimed the tax benefits. They plan to take a new loan in the spouse's name to purchase another house for rental purposes. The response clarified that each spouse can own a house, with one being exempt as self-occupied. The spouse can purchase a new property and receive tax benefits on the loan. Additionally, the interest on the new rental property can be deducted from the rental income without restrictions.