Benefit of house loan - Property in joint name

[vikas girdhar]

if a house is brought by husband & wife in joint name, but housing loan is taken by husband in his own name & repayment of loan is made by his bank account only , then benefit of repayment of Principal & int shall allow only to husband or to both husband & wife.

[Surender Gupta]

If there is no repayment, there is no deduction. In you case, repayment of loan is being made by husband. Therefore, wife is not eligible for deduction.

AI Summary

Repayment-based deduction: Only the person who actually repays a housing loan may claim principal and interest tax benefits. Deductions for housing loan principal and interest are available only to the person who actually makes the repayments; if no repayment occurs there is no deduction. In a jointly titled property where the loan is taken and repaid solely by one spouse from that spouse's account, the tax benefit accrues to the repaying spouse and not to the non paying co owner.