Ask The Tax Expert
Joint House Loans

Question: I already have HL of 10lacs to repay. Is it a good idea to invest in another property (2bhk apt/site) with joint HL. I have 2lacs in hand to start investment. Please suggest.

            
Answer: Firstly, the decision to buy a second house or not is entirely yours. A house is always considered a great investment as the value of land only appreciates in the long run.

              
In case you are going to go for a joint  house loan, the entire interest paid during a financial year is tax deductible apart from the principal deduction one is entitled to under section 80C. Each co-owner *** co-borrower will be allowed separate deductions under the IT Act subject to the overall limit of Rs 1 lakh per annum per individual under section 80C and Rs 150,000 per annum per individual under section 24b (in case of self-occupied property).

          

Warm Regards,

TaxYogi

Published Mar 18 2011




Comments

Comments

 

Anonymous said:

I have a case of my friend here.  

My friend and his wife have a joint property here in India for which they pay regular EMI. EMI is linked to his wife salaried account and he transfers money regulary in her account to claim the joint home loan tax benefits. Now, he went to US alone on L1 visa for an year and he wants to do the loan prepayment from his earnings but as he dont have NRI/NRE account so he has to use remit-2-india. So, if he transfers money to his wife account's, then will that be taxable to her? Point to be noted that they both will pay this money only towards loan prepayment.

March 29, 2011 1:59 AM
 

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September 20, 2011 1:23 AM
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