Taxation angle in case of Joint Ownership

1)    Taxation Benefit for Joint Owners

A joint housing loan comes with the twin benefit of increasing the overall loan eligibility and the income tax rebate that can be claimed by both co-applicants individually under Section 80C and Section 24. The mandate in claiming the income tax rebate is that the co-applicants of the housing loan should also co-own the underlying residential property.

In case a person is just a co-borrower of a loan and not a co-owner in the property, he cannot claim the tax rebates. On the other hand, if the co-owners are equal owners of a property but if the share of the loan is 2:1, the tax benefits can also be availed in the same ratio.

The income tax benefits are applicable in proportion to the ownership structure. For example, if the ownership in a property is 60:40, a loan of say Rs 50 lakhs will be split as Rs 30 lakhs and Rs 20 lakhs respectively and this ratio will be applicable while calculating tax benefits on interest/principal repaid on this loan.

Therefore, it is advisable for joint owners to procure an ownership sharing agreement stating the ownership proportion on a stamp paper as legal proof of the ownership. The case for the housing loan gets stronger in case of joint applicants. Banks consider the earning potential of co-borrowers and decide on the eligibility of the loan. Therefore, the loan eligibility increases in case of joint loan account.

The joint account holders (owners of the property) can claim income tax benefits individually. The housing loan benefits that fall under Section 80C and Section 24 of Income Tax Act make each borrower eligible for a maximum deduction of Rs 1.5 lakh and Rs 2.00 lakhs associated to principal repayment and interest payable on the home loan respectively.

2)    In case the assessee has sold the residential property, it is advisable that new property should be brought in the name of assessee alone rather than joint name.

In CIT Vs Kamal Wahal and in CIT v. Ravinder Kumar Arora honorable Delhi High Court ruled where entire purchase consideration was paid only by the assessee, it would be treated as the property purchased by the assessee in his name and merely because he has included the name of his wife and the property was purchased in the joint names would not make any difference.

However on the same issue Parkash V/s ITO, Mumbai high Court has ruled in the favour of revenue. There is no Supreme Court ruling on the matter. 

3)    An assessee can receive rental income from any number of residential properties and housing loss (i.e excess of deduction over income) from one house property can be easily set off against income from other house property and even from salary income.

Deduction for Housing loans and Second House property

If an individual holds more than one property in his name, only one such property may be considered as self-occupied and the others are classified as ‘deemed rented out’.  The property to be classified as deemed rented out is at the individual’s discretion. From taxation angle deemed let out house increases your tax liability in case standard deduction and interest on 2^nd loan is lower than the annual rental value (I.e it will result in addition of income in your total income).

Deduction on account of principal repayments is capped at R 1.5 lakh under Section 80C provided that the house property is not sold within 5 years of obtaining the possession. However, AO’s have been denying deduction available for repayment towards the principal portion of housing loan under section 80C for second housing property. 

Interest Deduction on Housing Loan

 The deduction available on account of interest for a self-occupied property is limited to Rs 2 lakh per year.

The interest portion paid on ‘rented out’ properties is allowed without any cap (The cap of Rs 2 lakh u/s 24 is for interest paid on Self occupied house property).  However, if the property is not acquired/constructed within three years ( 5 years from 01^st Apr 15) from the end of the financial year in which the loan was taken, the interest benefit would be reduced to R 30,000 only. In case of let out property construction can be completed after 3 years also and there would be no cap of Rs 30000.

House doesn't have to necessarily be occupied by the taxpayer for it to be considered a self-occupied house. Members of the family - spouse, parents and children - may also be living there.  

Sec 24 (Interest) deductions in various scenarios

a)    One Own house but not self occupied (I.e living in rented accommodation).

In case a property has neither been self-occupied by the owner (or his family members) by reason of the fact owing to his employment, business or profession carried on at any other place (i.e he has to reside at that other place not belonging to him) nor the property is let out, then the same will be treated as self occupied and cap of Rs. 2 Lakh under Section 24 will be attracted. In case you receive HRA allowance in salary, you can claim deduction based on rent paid.

b)    Two houses of which one is self occupied

In case of deemed let out also the cap of Rs 2 lakh won’t be attracted.

c)    Second house is actually let out

In case the property has actually been let out than the cap of Rs 2 lakh won’t be attracted.

Other Points

In case you have paid EMI, you should obtain certificate from your borrower bifurcating the same between principal and interest. 

Tax benefits can be claimed for multiple home loans. However overall cap of Rs 1.5 lac and Rs 2 lac (in case of self occupied) will be seen in totality and not loan wise. 

Interest benefit once availed will not be reversed/added back even if the house property is transferred within 5 years. 

The Interest that has been paid before the completion of construction should be aggregated and the whole aggregated amount shall be allowed as tax deduction in 5 equal instalments for 5 successive Financial Years starting from the year in which the construction has been completed.

For any loan taken for repair, renewal and reconstruction, there is no tax benefit on principal repayment. The tax benefits on interest payment under Section 24 for such loan shall be limited to Rs 30,000 per financial year for Self occupied property and without any cap for let out property.

Loss under house property can be adjusted against salary and can be carried forward for 8 years.

Dashcam/ Digicam review Comparison DVR

Dashcam/ Digicam review Comparison 

Based on my search, i am of the following opinion: - 

Poor chipset Poor Video Quality, No HDMI, records in AVI F2.4	Novatek 96220FG, 96632  Ambarella A2S60, A770 Sunplus 1718 Zoran 12M, Generalplus1248	Good chipset Supports Wide Dynamic Range Able to record in 1920*1080p mov, mp4 format  HDR/WDR F2.0	Novatek 96550, 96650, NT96660,NT96655 Ambarella  A7LA30,A7LA50, A7LA70 Zoran 12P,12V
Poor CMOS sensor Poor night vision	Aptina AR0330 Omnivision OV2710	Good CMOS Sensor	Omnivision OV4689 Sony Exmor IMX322 Sony Exmor IMX323

 If your DVR has IR Diodies (Small bulbs) then it means it has night vision abilities. However, a good chipset can offset absence of these and still capture good videos at night.

 Ambarella is a non Chinese company and SZdome (assemblers) is one of the reputed Chinese company. 
               

Any combination from of good Chipset and good CMOS sensor will make a great camera irrespective of the brand under which it is sold. 

My Shortlisted Models

Xiaomi 70MAi (MSC8328P and IMX323) $ 38 ( Without screen With wifi, F2.2)
 Dome G 90 (LA30 and 4689) $ 44

Mini 0805 (LA50 and 4689)  $48 
Viofo A118 C ( NTK96650 and CMOS) $50
Azdome A305 (NT96658 and IMX323) $66 (With wifi, F1.8)
Autobot Eye (NT96655 and IMX322) $ 72 (Without screen and with Wifi)
 Dome G 90 (LA70 and 4689) $ 84 (60fps)

MG380G (12P and IMX322) $100  


Goodchipset but not good image sensor
H906 (AU3522+ AR0330) $ 44
Anytek AT 66A (NTK96650 + AR03030) $58


Make sure you get dual USB car charger and 3 meter USB-Micro USB cable is detachable from both ends otherwise your charging socket will be blocked forever.  

You can easily procure the aforesaid from gearbest.com and banggood.com.

I have personally used Autobot eye. Although the quality of video was good but the product stopped functioning within 10 months.