[musafir_blr]

Please let me know if I can avail 3L interest rebate (combined) and share the govt links on the same so that I can talk to my company finance guys.

Hi Neoonwheels, even I had similar question earlier and banged many doors to know the answer. What I learnt is: You (and your wife) cannot take an exemption of more than 1.5 Lacs out of one one property. It needs to be total of 1.5 Lacs as you mentioned above. However if you invest in the second property and the repayment of the first property is still going on, then you and your wife can together get the exemption of tax on the total amount of interest paid (even if it is more than 1.5 Lacs per annum).
But the same is NOT applicable for the third property onwrds! :(

[ghodlur]

Originally Posted by neoonwheels

Guys,

My wife and I, have taken a home loan. We have the flat registered in our names. I would like to ask, can we BOTH, take the reabte of 1.5L interest paid on home loan per annum? The interest component would be close to 3L.

My company says for joint loans, I can avail max 75K benefit, if my wife is also claiming it. So overall we can avail max 1.5L benefit on interest paid.

Please let me know if I can avail 3L interest rebate (combined) and share the govt links on the same so that I can talk to my company finance guys.

In no way can you claim the Interest rebate for more than 1.5L single or combined. If both of you need to claim the interest rebate then there is a deed required which will show the EMI repayment. I dont have detailed information on the same but I have heard my colleagues do this deed. Hope this helps.

[neoonwheels]

Originally Posted by ghodlur

In no way can you claim the Interest rebate for more than 1.5L single or combined. If both of you need to claim the interest rebate then there is a deed required which will show the EMI repayment. I dont have detailed information on the same but I have heard my colleagues do this deed. Hope this helps.

Originally Posted by musafir_blr

Hi Neoonwheels, even I had similar question earlier and banged many doors to know the answer. What I learnt is: You (and your wife) cannot take an exemption of more than 1.5 Lacs out of one one property. It needs to be total of 1.5 Lacs as you mentioned above. However if you invest in the second property and the repayment of the first property is still going on, then you and your wife can together get the exemption of tax on the total amount of interest paid (even if it is more than 1.5 Lacs per annum).
But the same is NOT applicable for the third property onwrds! :(

Originally Posted by vina

Your company is telling you correct story. You two can avail 1.5L combined.

Thanks a lot guys. Can I ask my bank to give me a bank loan repayment statement which shows, she has paid 50K interest and I have paid 1L interest? The EMI goes from a joint account and the representative had said that we can adjust the ratio however we like.

[ghodlur]

Originally Posted by neoonwheels

Thanks a lot guys. Can I ask my bank to give me a bank loan repayment statement which shows, she has paid 50K interest and I have paid 1L interest? The EMI goes from a joint account and the representative had said that we can adjust the ratio however we like.

Banks would not generally give two seperate provisional tax statements, it will give only one for the one account. That is where the deed comes into picture I guess where the division of EMI is mentioned. Talk to the bank and see if they can give two statements.

[neoonwheels]

Originally Posted by ghodlur

Banks would not generally give two seperate provisional tax statements, it will give only one for the one account. That is where the deed comes into picture I guess where the division of EMI is mentioned. Talk to the bank and see if they can give two statements.

Could you please throw some light on the deed? How and where can I get it done? If bank gives me only one statement on the joint account then I guess as you said, I have to make a deed about the loan repayment structure between my wife and I.

[ghodlur]

Originally Posted by neoonwheels

Could you please throw some light on the deed? How and where can I get it done? If bank gives me only one statement on the joint account then I guess as you said, I have to make a deed about the loan repayment structure between my wife and I.

I wished I could have helped you more on this one. As I said earlier I dont have all details. Better to ask the bank since I believe this EMI payments comes during the home loan saction where you would be providing the bank account debit details. Try googling also or see www.apnaloan.com or similar.

[vina]

Originally Posted by neoonwheels

Could you please throw some light on the deed? How and where can I get it done? If bank gives me only one statement on the joint account then I guess as you said, I have to make a deed about the loan repayment structure between my wife and I.

What you can (actually could) do is something like this:

Split the rights of your property into two, between your wife and you - get two registration deeds, two loans (combined value same as your existing loan) two of everything - and then you can claim.

It is a lot of hassle, but can be done at the time of buying a property. Once you have bought though it it is a LOT more hassle.

[santhoshs]

Originally Posted by musafir_blr

Hi Neoonwheels, even I had similar question earlier and banged many doors to know the answer. What I learnt is: You (and your wife) cannot take an exemption of more than 1.5 Lacs out of one one property.(

Originally Posted by vina

Your company is telling you correct story. You two can avail 1.5L combined.

Originally Posted by neoonwheels

Please let me know if I can avail 3L interest rebate (combined) and share the govt links on the same so that I can talk to my company finance guys.

Originally Posted by ghodlur

In no way can you claim the Interest rebate for more than 1.5L single or combined. If both of you need to claim the interest rebate then there is a deed required which will show the EMI repayment. .

For determining the amount of deduction - The deduction mentioned in the law is for an individual and not for a property. Each individual is coming together and purchasing a property. For commercial viability the property is purchased in Joint name. Each individual has invested either their own money or borrowed money. If the sale deed is silent about the share, the general presumption is 50:50.

If the total interest is exceeding Rs.3 L, each individual can avail benefit of Rs.1.5 L, it is not restricted to Rs.1.5 L only. Suppose interest is less than Rs.3 L, then 50% of this may be availed as deduction.

Pre-condition / caution

1. the sale deed should be in favour of all parties (For ex - husband and wife)
2. loan should be in Joint name.
3. If the EMI is being paid by a single account (husband or wife), as a precatuion the other person can trf 50% of such EMI to his / her account. this is not necessary but to be on safer side you may follow.

[vina]

Originally Posted by santhoshs

For determining the amount of deduction - The deduction mentioned in the law is for an individual and not for a property. Each individual is coming together and purchasing a property. For commercial viability the property is purchased in Joint name. Each individual has invested either their own money or borrowed money. If the sale deed is silent about the share, the general presumption is 50:50.

If the total interest is exceeding Rs.3 L, each individual can avail benefit of Rs.1.5 L, it is not restricted to Rs.1.5 L only. Suppose interest is less than Rs.3 L, then 50% of this may be availed as deduction.

Pre-condition / caution

1. the sale deed should be in favour of all parties (For ex - husband and wife)
2. loan should be in Joint name.
3. If the EMI is being paid by a single account (husband or wife), as a precatuion the other person can trf 50% of such EMI to his / her account. this is not necessary but to be on safer side you may follow.

Are you a lawyer? If you are then you just saved me and my father a bunch. Thanks.

[bharanidharang]

Will Bank FD's interest go up after the recent hike in base rate ?

My gut feeling is that since SB interest has gone up, Bank's will cut corners in the normal FD's !

[benbsb29]

Originally Posted by santhoshs

Pre-condition / caution

1. the sale deed should be in favour of all parties (For ex - husband and wife)
2. loan should be in Joint name.
3. If the EMI is being paid by a single account (husband or wife), as a precatuion the other person can trf 50% of such EMI to his / her account. this is not necessary but to be on safer side you may follow.

Both my wife as well as myself are claiming tax benefits on our home loan. All we had to do is give a signed declaration at both our respective offices about the ratio in which we would like the amount to be split for the claim. In our case, we have opted for 60:40, in favour of me.

As Santosh mentioned above, we have the sale deed as well as loan on both of our names, where my wife is the co-applicant. The EMI amount is deducted from my salary account so i do not think it is necessary to have this split to my wife's account as well.

Hope that helps.

[neoonwheels]

Originally Posted by benbsb29

Both my wife as well as myself are claiming tax benefits on our home loan. All we had to do is give a signed declaration at both our respective offices about the ratio in which we would like the amount to be split for the claim. In our case, we have opted for 60:40, in favour of me.

As Santosh mentioned above, we have the sale deed as well as loan on both of our names, where my wife is the co-applicant. The EMI amount is deducted from my salary account so i do not think it is necessary to have this split to my wife's account as well.

Hope that helps.

Originally Posted by santhoshs

For determining the amount of deduction - The deduction mentioned in the law is for an individual and not for a property. Each individual is coming together and purchasing a property. For commercial viability the property is purchased in Joint name. Each individual has invested either their own money or borrowed money. If the sale deed is silent about the share, the general presumption is 50:50.

If the total interest is exceeding Rs.3 L, each individual can avail benefit of Rs.1.5 L, it is not restricted to Rs.1.5 L only. Suppose interest is less than Rs.3 L, then 50% of this may be availed as deduction.

Pre-condition / caution

1. the sale deed should be in favour of all parties (For ex - husband and wife)
2. loan should be in Joint name.
3. If the EMI is being paid by a single account (husband or wife), as a precatuion the other person can trf 50% of such EMI to his / her account. this is not necessary but to be on safer side you may follow.

So this means, my wife and I, can get the benefits worth 3L of interest repayment. I was confused since my finance dept guys said I can avail only 75K as my wife is co applicant. I was arguing with them on the term that the law says every individual can avail 1.5L as tax rebate.

Do you have any official source (Web links) which clearly says this so that I can forward the links to my company finance guys.

[benbsb29]

Originally Posted by neoonwheels

So this means, my wife and I, can get the benefits worth 3L of interest repayment. I was confused since my finance dept guys said I can avail only 75K as my wife is co applicant. I was arguing with them on the term that the law says every individual can avail 1.5L as tax rebate.

I am not sure if you understood it right. What i meant was that since i specified the ratio as 60% for me, and 40% for my wife, i can claim 1,12,500 while she can claim on the remaining from the 1.5 lakhs rebate. The cumulative from both the individuals should add up to the upper cap of the amount which can be claimed. This means your company's finance guys are right, provided you only seek to claim 50% against your name.

[neoonwheels]

Well this is really getting confusing now

I guess, I should consult a CA for this. What I dont understand is, the tax rebate is given to earning individuals and not property. So if the interest paid is 3L and if the property is a joint property, why cant we get the rebate as 1.5L for each individual property co-owners.

[ghodlur]

Originally Posted by santhoshs

If the total interest is exceeding Rs.3 L, each individual can avail benefit of Rs.1.5 L, it is not restricted to Rs.1.5 L only. Suppose interest is less than Rs.3 L, then 50% of this may be availed as deduction.

I am sorry my friend but I beg to differ on this. The interest benefit is for single property and not on individuals. So the max interest rebate you can get is 1.5L no matter how many individuals are involved. If your argument was true then a single property would have many more applicants and everybody would be claiming the exemption which is absolutely not true.

Originally Posted by neoonwheels

I guess, I should consult a CA for this. What I dont understand is, the tax rebate is given to earning individuals and not property. So if the interest paid is 3L and if the property is a joint property, why cant we get the rebate as 1.5L for each individual property co-owners.

You can get a max rebate of 1.5L thats straight and simple. If your CA says that more than one person can claim the 1.5L rebate please let us know under what circumstances is this possible.