Date:14/11/2004 URL: http://www.thehindubusinessline.com/bline/iw/2004/11/14/stories/2004111400321400.htm

Back Joint loans, proportional benefit

T. Banusekar

I PURCHASED a property last year jointly in my wife's and my names. For purchasing this property, we had taken a loan from HDFC. The loan is taken with my wife's name as the first name and me as the co-applicant.

We have since taken a further loan for extending the house, again with my wife's name as the first name and with me being the co-applicant. I would like to know who would be entitled to claim the interest on the loans? Can we change the proportion in which the interest is to be claimed by us at a later date?

Ramesh

Reply

The interest on the loans can be claimed by you and your wife in the proportion in which you are the owners of the property. The proportion cannot be varied later. It will always have to be in the ratio in which you are the owners of the property.