Claim 100% Tax Benefit

I bought a flat in joint name with my wife. The entire own contribution has been made by me from my own sources and the home loan is also being paid entirely by me from my own sources. My wife is a housewife and has no separate income of her own and does not file tax returns. Will I be able to claim the entire tax benefit on the home loan repayment, even though the certificate received from the bank is in joint names?

This should not pose any problem. You should enter into a simple share agreement with your wife in the beginning itself. The agreement should clearly state that the entire payment is being made out of your sources and hence, you have 100% beneficial ownership. You can submit the certificate received from the bank, along with your return claiming 100% deduction. If the income tax officer raises any issues, you can submit the copy of this agreement to him.

For a copy of the draft agreement, click on the link below:

http://www.apnaloan.com/primers/home-loan-india/shareagreement.html

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