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Joint loans, double deductions?


Joint loans, double deductions?

Last updated: August 23 2007
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  • Joint loans, double deductions?


    I just read and would like to share an important piece of information on general queries related home loans, which i found is quite useful for all of us.

    I and my wife are employed and we are tax payers.We propose to take a housing loan jointly in our names and purchase a house. Will both of us be entitled to claim the deduction in respect of interest up to a limit of Rs 1,50,000/-?

    If both, you and your wife, are the actual owners of the property, each one of you will be able to claim the deduction with respect to the interest on the housing loan.
    The limit of Rs 1,50,000/- will be reckoned with and each one of you can claim a deduction up to this maximum limit with respect to the interest.

    I purchased a house in Delhi through a housing loan. I have been claiming the tax benefits on the repayment of loan and the payment of interest. I now propose to gift this house to my parents and purchase another property by availing another housing loan. Can I get the tax benefits on the housing loan taken for both the house properties?

    You can get the tax benefits only in respect of the repayment of principal and payment of interest on the housing loan that you propose to take.
    It will be appreciated that once you have gifted the existing house property to your parents, you will no longer be the owner of the property and though you continue to pay the EMI on such property which is gifted, the tax benefits on the same cannot be claimed since you are not the owner of the property.

    I purchased a house in Gurgaon in March 2007. Can I claim any tax benefit on the stamp duty and registration charges paid for the purchase of the said house? If so, what is the limit up to which I can claim the same and what are the documents that are needed for the same?

    A deduction can be claimed by you in respect of the stamp duty and registration fee for the purpose of transfer of house property to you.
    This deduction can be claimed under Section 80C (2)(xviii)(d). The claim for deduction will be subject to a maximum of Rs 1,00,000/-. You may note that this limit of Rs 1,00,000/- will be the aggregate amount of deduction that you can claim in respect of various payments and investments which are referred to in Section 80C.
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