Tax Rebate on Home Loan

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  1. Neha Sharma

    Neha Sharma Active Member

    In that case, it is better if you purchase the property on your name and take the Home Loan as well in your name and pay from your own bank account.

    Just add her as a co-applicant for taking the Home Loan from Bank but ensure that you yourself pay the whole EMI's from Day 1.

    In that case, you can claim the deduction.
    DeepakDeep likes this.
  2. DeepakDeep

    DeepakDeep New Member

    Thanks for the help Neha.

    I have one more question based on that.

    Lets suppose my wife is not working and she is a co-applicant in property and loan.

    How will tax rebate be handled in that case? Will half of interest and principle be wasted when claiming tax rebate as my spouse is a housewife?

    Thanks & Regards,
    Deepak Shukla
  3. Neha Sharma

    Neha Sharma Active Member

    She can still claim this deduction from other sources of income like Rental Income. Income from Interest on Fixed Deposit etc.

    This deduction can be claimed against any income.
    DeepakDeep likes this.
  4. DeepakDeep

    DeepakDeep New Member

    So in a nutshell, if She is a c0-applicant(no matter she is working or not), she ONLY has to claim tax rebate on 50% else it will be wasted.

    Last edited: Oct 6, 2014
  5. DeepakDeep

    DeepakDeep New Member

    One of the CA told me that in case one of the co owner is not earning, then the earning partner can enter into a legal agreement with the former to state that the entire burden of the home loan is being borne by the earning member. This will make the earning member to take full advantage of all tax exemptions available on the home loan. This agreement can be signed on Rs. 100 stamp paper.

    Is this a legal practice?

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