I am having below query related to tax implication on home loan for one of my colleague:
He has taken home loan on property near to his office location but staying at his home town ( 1.5 hr journey from office) and paying rent to his mother(mother showing the same in her ITR).Home loan is taken by my friend only as his wife is not working but his wife is joint owner of the property. Property is currently on rent. so can he claim the HRA and showing rent income in her wife ITR rather than his own ITR.Is it legally fine as wife is also joint owner of the property? Also interest on home laon benefit is taken by my friend only.
He can claim HRA.
As both of them co-own the property, the rental income has to be shown in both of their income tax return forms (as per ownership ratio). By default the ratio is 50:50.
If he is paying full EMI (100%) from his bank account then he can claim 100% tax benefit on home loan EMIs.
Related articles :