exemption of interest paid on housing loan

[krishna murthy]

Dear All,

The site is in the name of wife.  Husband has availed the housing loan and constructed the house on the site.  Husband pays the emi to the bank.  Can husband claim the exemption of interest paid on the housing loan under section 24 of Income Tax Act.  is there any conditions to be fulfilled.  this is the only house and is self occupied.

Regards

[rinki todi]

As per the information provided it appears that house property is wholely owned by husband as it is constructed by him solely.  As regards the claimiing of deduction it is very clear that the husband has taken a loan for construction of the house and accordingly the house property is shown as an asset in his books, therefore he is eligible to take the deduction for amount of interest paid on housing loan. Maximum amount od deduction is 150000 under section 24(b).

[krishna murthy]

Sir,

thanks for the reply.  the site is registered in the name of wife, then also husband can claim the exemption please.  Regards

AI Summary

Housing loan interest deduction may be claimed if the borrower treats the constructed house as his asset and repays the loan. Claiming deduction for housing loan interest hinges on treating the constructed house as the borrower's asset: where the borrower alone finances and constructs the house, shows it in his books and repays the loan, he may claim the interest deduction under Section 24, subject to statutory limits and conditions applicable to self-occupied property.