TaxTMI 
TaxTMI 
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?
Benefit of interest on house loan
05 Aug 2009 
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Interest deduction on housing loan: spouse buying a let out house can deduct loan interest against rental income.
Each spouse may hold a separate house property and one house may be treated as self occupied for exemption; where the acquiring spouse takes a loan in her own name and the property is let out, interest on that borrowing is deductible against rental income. Title, occupancy status and the identity of the borrower determine entitlement to exemptions and deductions, and a property purchased and financed solely by the spouse who will rent it qualifies for interest deduction against the rental receipts without the self occupation restriction. (AI Summary)
Each spouse may hold a separate house property and one house may be treated as self occupied for exemption; where the acquiring spouse takes a loan in her own name and the property is let out, interest on that borrowing is deductible against rental income. Title, occupancy status and the identity of the borrower determine entitlement to exemptions and deductions, and a property purchased and financed solely by the spouse who will rent it qualifies for interest deduction against the rental receipts without the self occupation restriction. (AI Summary)