Housing Loan Interest, Income Tax

[Rahul Bagaria]

I want to understand that whether Rs 1,50,000 limit will be given to each respective assessee where the property has been taken in joint name and each owner is paying principal and loan amount repectively from their bank account.

This is inspite of the fact that the unit is a single unit but in joint name.

Posts / Replies

[CA Rachit Agarwal]

It all depends upon the proportionate share in the property. If the proprtion is not definite then it would be considered as Associations of Persons rather than individuals.

Hence in our opinion only the first holder to the property can avail the interest exemption if the share is not definite.

[DEV KUMAR KOTHARI]

It is clear that there are joint owners and they have borrowed capital. In the relevant  documents the facts are  likely to be clear in this regard. Therefore, each joint owner should be entitled to the relief.The reflection in books of account of joint owners is also relevant.

the facts should be complete and clear to have afruitful group discussion.