arbitrary apportionment of the home loan interest deduction between joint owners

 Under Section 24(b) of the Income Tax Act, arbitrary apportionment of the home loan interest deduction between joint owners is not permitted. The apportionment must follow logical and documented criteria, typically based on either:

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✅ 1. Ownership Share (Default Rule):

If both co-owners have equal ownership, and no evidence suggests otherwise, the deduction must be split equally.

• For example:

  • Ownership: 50:50

  • Interest Paid: ₹2,50,000

  • Deduction Allowed: ₹1,25,000 per person

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✅ 2. Proportion of Loan Repayment (If Proven):

If co-owners repay the loan unequally, and this is evidenced by bank statements or loan repayment records, then the deduction may be split in the ratio of actual payment, even if ownership is equal.

• For example:

  • Owner A repays 80%, Owner B repays 20%

  • Then interest deduction can be claimed 80:20

  • But this must be clearly supported with proof like bank account transactions or a notarized agreement

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❌ Arbitrary Apportionment is Not Allowed:

You cannot claim:

• ₹2,00,000 by one person

• ₹50,000 by the other
  unless this matches actual loan repayment pattern AND can be substantiated.

The Income Tax Department may disallow the deduction for incorrect apportionment if scrutinized.

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📌 Summary:

Criteria	Allowed?	Conditions
Equal split (50:50)	✅ Yes	When ownership and EMI contribution are equal
Unequal split (e.g. 80:20)	✅ Yes	Only if supported by proof of actual EMI payment
Arbitrary split (e.g. 2L/50k)	❌ No	Not allowed without documentary justification

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