Hi,

If 'A'  and 'B' purchase a house jointly with ownership sharing in agreement as:-  A : B = 90% : 10%.

1) Can the FULL home loan be taken in the above case by 'B' only (in case 'A' is a housewife with no income).

2) Can the claim for tax benefits made by 'B' only.

There is specific provision u/s 26 of the I T Act for taxation of joint ownership . Section 26 of the I T Act states ” Where property consisting of buildings or buildings and lands appurtenant thereto is owned by two or more persons and their respective shares are definite and ascertainable, such persons shall not in respect of such property be assessed as an association of persons, but the share of each such person in the income from the property as computed in accordance with sections 22 to 25 shall be included in his total income. ” .

Therefore, if you are one of the owners among several one, and you paid the loan,

• Every joint owner is to be assessed individually proportionate to your share in house.

• Every joint owner, who pays back the loan, will get allowance interest deduction upto Rs 1,50,000 maximum u/s 24 of the I T Act and Rs 1,00,000 [maximum] u/s 80C .

• Although , a person may be signatory of joint loan, yet he does not pay any amount of loan, the tax authorities may not allow the deduction of interest.