Lease out a property for full interest rebate
My wife and I have taken a housing loan of Rs 15.77 lakh in our names with me as the second applicant. For a 20-year term, the EMI is Rs 14,500. My wife pays Rs 10,000 and I pay Rs 4,500. Both of us are income-tax assessees. How do we claim the benefits in respect of the interest and principal repayment towards the housing loan? - Ashutosh
Both of you can claim the interest on the housing loan in the proportion of your ownership as deduction. You can also claim the principal repayment as a deduction in the proportion of your ownership along with your wife in the property.
In case the property is self-occupied, the deduction in respect of interest would be restricted to Rs 1,50,000. This limit of Rs 1,50,000 would apply with reference to each of the co-owners.
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