According to the income tax rule, rent can be given to the wife in the name of joint property or wife’s house.
Transfer the rent not in cash, but in the wife’s bank account.
The dream of the government is that everyone should have their own house, so different types of exemptions are being given in tax. On the other hand, tax experts advise that if you take a joint home loan with your wife, and the wife’s name is also in the ownership, then there are many benefits. In this article, you will specifically tell that if the house is in the wife’s name and the husband gets a rent allowance, can he claim it or not. Meaning that a husband can rent his house to his wife or not?
According to the income tax rule, rent can be given to the wife in the name of joint property or wife’s house. However, it is important to create a rent agreement and rent a transfer from the account. Apart from this, take a receipt from the wife in lieu of rent. Keep in mind that the rent is being transferred not in cash, but in the wife’s bank account. Two situations arise here. If 100% ownership of the house is in the name of the wife, then the rent agreement can be transferred to the bank account on a monthly, quarterly, half-yearly or yearly basis by making a rent agreement and a receipt has to be taken as proof. If the husband and wife have a joint property, then rent can also be given. But the share of the husband in the ownership, the share of the rent will be added to his earnings.
Double benefit in tax
Apart from this, there are many other benefits in a joint loan. For example, the EMI of a home loan has two parts. First interest and second principal amount. In a joint home loan, both the husband and wife can claim deduction under the 80C on the principal amount based on the stake in the ownership up to Rs 1.5-1.5 lakh. Under section 24, interest repayment can be claimed up to Rs 2-2 lakh. In this way, up to 7 lakh rupees are exempted from tax in joint home loans.
Women also get exemption in stamp duty and interest rate
Apart from this, stamp duty is less for women in different states, which will also benefit. There is also a separate discount in the interest rate for women. Apart from this, during the eligibility check, there is also a benefit in joint home loan. However, the co-applicant’s weak CIBIL score can also hurt.
Also read, which scheme is beneficial for PPF or NPS higher returns, in which money will be safe and will be exempted from tax, know details
Also read, after a three-fold jump in exports in April, there was an 80% jump in exports in the first week of May.