Deductions u/s 24 (b)

Assessee (husband only) can claim the benefit under section 80C for principal deduction of the housing loan EMI is not allowed, if the home loan is for the purpose of reconstruction, renewal or repair of house property. Tax benefit under section 80C is allowed only for acquiring or constructing a new home and is not for alteration of an existing house.

In contrast, deduction for Interest is allowed under section 24(b) even for a loan taken for the purpose of reconstruction, renewal or repair of existing house property but subject to the limit of Rs 30,000 in case of self-occupied house property. In case of let out house property, actual interest is allowed without any ceiling.

Both husband and wife are borrower of loan from bank and treated as separate entity i.e. assesses for income tax assessment purposes. So Husband and wife are eligible to get deduction u/s 24(b) for the amount of 50% each of the interest accrued on borrowed capital. No one can claim 100% of interest.

QUERY:If an assessee and his wife have taken a joint loan for the purchase of a house property, & if the assessee is the registered owner of the house property, Can both of them ( assessee & his wife ) claim deduction U/S 24 (b) for the interest paid by them on the housing loan?

REPLY: No, only the 'owner' of the house property can claim the deduction.

The assessment of income from a house property, as per the law and practice, is in the hands of its owner.

Sir,

If the house loan is taken by husband and wife together (wife's name is added as first applicant to get discount in home loan interest rate) and flat is also registered in both's name (wife being the first name) and if wife is homemaker and does not have any income, how the rental income from the flat is treated and how the benefit under this section is allowed?

If the wife is only a benamidar, the husband can declare/claim it in his ITR, and accordingly declare the house property income/claim the deduction only in his hands. In otherwords, hecan admit that he is the real owner of the house property. Whether this is beneficial to the assessee, depends on the actual  facts & figures.