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hone loan tax benfit in case of wife as joint onwer


Dear Sir / Madam

We had a flat in Pune purchased in year 2007. On property agreement my wife's name is as co onwer. However shares of each is not been mentioned in the property papers.

My wife is housewife and she has no income source.  The home loan certificate from bank also shows her name as co applicant for loan.

Now I would like to know whether I am eligible to claim 100 % tax benefit against my salary ? i.e. Interest deduction upto 1.5 lacs and principal upto 1 Lacs (under 80 C).

However as per the employer I am eligible to get only 50 % of the tax benefit as wife is co onwer. He says there is nothing mentioned in the agrrement about the shares of property.

Is there any legal document, law notification available under section 24 which will be easy for us to convince our employer in this regard.

Your help in this regard is required

Thanking you

Yours Sincerely

Gurudatt Kulkarni

 
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Advocate

if no share is mentioned then its 50-50%. ur employer is right so u can't convince ur employer but u have to be convinced. 

 
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But Sir

What about the TAX benefit whether only 50% is given to me or I can claim 100% as my wife is housewife and no income source. Is there any way around to get full 100% benefit as the EMI gets paid from sole salary of mine.

 

Can we make an afedevit for such thing.

 

Regards

Gurudatt Kulkarni

 
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CEO- Jena & Company www.jenasworld.com

Hi,

As u said that your wife is not earning and not filing her income tax return, in that case u can take her NOC that she is not claming the examption u/s 24, then u can claim 100% benefit. 

 
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PLEASE ASK YOUR QUARIES TO TAX GURU LAKHTIYAJI THROUGH CNBC AWAJ CHANNEL

 

I AM OF THE OPINION THAT  YOU CAN CLAIM 100 % TAX BENIFIT , IT DOES NOT MATTER  WHETHER PROPERTY IS IN JOINT NAME OR NOT.

 

MAJITHIA

 
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Dear Mr Kulkarni,

 

Your employer is wrong. If your wife was working you would have got a tax benefit upto Rs. 150000 + 150000 on Interest under section 24 and Rs. 100000+ 100000 on principal under section 80C. (Total Rs. 300000/- on interest and Rs. 200000/- on principal). Since your are single service group your total benefits are already half at Rs. 150000/- and Rs. 100000/-. Only thing you have to do is that give in writing that you only are paying the complete loan. You can have a Loan share agreement with your wife. 

 
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advocate & tax consultant

When entire loan repayment is made through your income sources u can claim 100% deduction. It is beeter to create a affidavit which ensure that your wife is not claiming deduction u/s 24 and submit it to your employer and also before ITO authority. U may apply to obtain certificate from concerned from concerned ITO by filing the affidavit if such authority is needed

 
Reply   
 

Hi,

I think the point is not being clarified properly.

@Kulkarni. If you are the single payee of the loan, you just have to give an affidavit that you are payong 100% loan. the quetion of 75000 does not arise at all. It is up to 150000 per person co-owning the flat. If actual interest is less then lesser amount is exempted. It is simple. The benfit is more in case of 2 or 3 co owners. I have also taken property in joint name with wife (as per reegistered document 50-50). But weI am payning back in the ratio of 70:30 in proportion to our income. The rebate also we are getting in ratio of 70:30 with a ceiling of 150000 (interest) for each of us. I have made a loan share agreement with my wife.

 
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