Interest On Loan Taken From Spouse For Home Purchase Eligible For Income Tax Deduction

You can claim the deduction in respect of interest on loan taken for the purpose of buying or constructing a house or for the purpose of repairs and renovation of your house under Section 24 (b) of the Income-tax Act, 1961. Such a loan can be taken from anyone including your relatives. Thus interest on loan taken from your wife for buying the house will also be available for deduction under Section 24 (b). Though there are no explicit conditions as to the rate of interest on such loans, it should be nevertheless reasonable.

You are not allowed to attach any document with your returns of income in respect of any of your claims for deductions or exemptions including for the interest claim. However, you should obtain and keep on your record a certificate from the lender as the same may be required by the assessing officer in case your ITR is selected for detailed scrutiny. Though there is no requirement to enter into any written agreement with your spouse regarding the loan, you need to obtain a certificate from the lender specifying the amount of interest in respect of such loan for the year. 

You should also be able to prove that the money so borrowed was indeed used for the purpose of buying your house. Under the old tax regime, the amount of deduction would vary depending on whether the house is self-occupied or let out. Under the new tax regime, deduction for self-occupied houses is not available, but the interest deduction for let out houses is restricted to the amount of taxable rent received as loss under the house property head. Such loss is also not allowed to be set off against other income.

Under Section 139 of the Income-tax Act, 1961, you were required to file your ITR for 2024-2025 by September 16, 2025. You can still file your return by December 31, 2025, but with certain consequences. You cannot carry forward any loss which you might have incurred. Moreover, you will have to pay a late fee of Rs. 5,000 if your taxable income exceeds Rs 5 lakh, else the late fee is restricted to Rs. 1,000.

Under Section 80C of the Income-tax Act, 1961, an individual can claim deduction under Section 80C in respect of tuition fee paid by him to any college, school, university or educational institution situated in India, and for a full-time course. The maximum deduction which can be claimed is restricted to Rs. 1.50 lakh. Since the college in respect of which you have paid the fee is situated outside India, no deduction is admissible under Section 80C. Do note that this deduction will be available only if you follow the old tax regime.