Interest deduction for Joint Home Loan for Rent purposes

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  1. Narayan Sastri

    Narayan Sastri New Member

    I own an apartment in Mumbai in my name.

    I intend to buy another apartment in joint name with my wife as first owner, and myself as joint by taking housing loan. My wife is not working.

    I have the following queries :
    1) Will I get housing loan from the instititutions for this purchase ?
    2) In the agreement I will mention the share of the property as 5% mine and 95% hers. She will contribute 95% and I will contribute 5% towards the principal component paid in the loan. However, I will be paying for the entire interest for this loan. So can I claim for the entire interest for exemption?
    3) The said new property will earn an income of around 18,000 monthly rent. In IT return I have to claim 5% of the rent and she will claim 95% of the rent. Is this correct?
    Thanks.
     
    Last edited: Mar 10, 2015
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    1. Yes, it is possible for you to get housing loan in this case.
    2. If the share of property is clearly specified, you would be able to claim the deduction in the same ratio as specified. However, if the ratio is not specified, you can claim the full deduction
    3. Yes, the rent would be distributed in the ratio of ownership. In case the ownership ratio is not defined, it would be assumed to be 50:50 for the purpose of rent.
     
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