Hello Sir,
Me and and my spouse had bought a flat in 2021. We took a housing loan from BOI and we are paying almost 2.5 lakh per annum as a interest on the loan. Both of us are tax payers. My question is, while filing a income tax, can I declare 2L as interest on housing loan and my wife can declare a 50k as interest on housing loan. Or the interest amount should be equally divided among us?
Ans: Deduction for interest on housing loan is allowed based on proportion in which loan is repaid. However, in case of husband and wife, if loan is repaid from joint account and both are contributing money to said account for loan repayment as well as other household expenses, interest can be claimed in different proportion as one can contribute more for housing loan.