Housing Loan Tax Benefits under New Regime

No. The income from House Property is taxable in the hands of owner of the property. Therefore, interest will also be deductable from income of owner. Since, you are not the owner of the property, you will not get the benefit of housing loan interest. Also, your wife is owner, but has not paid the interest, she will also not get the benefit from her income.

Yes, Interest on housing loan is eligible for deduction even in new tax regime. But the same is eligible for deduction only from House Property Income. It means if an assessee doesn’t have house property income, there is no deduction of Housing Loan Interest.
Under old tax regime, the assessee can get benefit of deduction of Housing Loan interest from other income upto Rs. 2 lacs.
Thus for example if other income of an assessee is Rs. 10 lacs and has paid housing loan interest of Rs. 3 lacs, the position under old tax regime and new tax regime will be as below :
Old tax regime :
Other Income                                                                10 lacs
Housing Loan interest allowed                                  2  lacs
Taxable Income                                                             8 lacs
New tax regime :
Other Income                                                                10 lacs
Housing Loan interest allowed                                  NIL
Taxable Income                                                             10 lacs

Yes. Municipal taxes paid are straight away deducted from the rent received. Thereafter, 30% of the balance (known as annual value) is allowed as standard deduction. Further, interest on housing loan is also allowed as deduction from the balance amount but upto Rs. 2 lacs only. This position is same in both new and old regimes.

No. Ownership is the basic need for taxability of House Property Income. Since, you are the owner of the property, the rent will be counted as your income even if you received it in wife’s account.

No. Since, you are not the owner of the property, the income from sub-letting is not house property income. It will be Income from other sources and due to this, you will not get benefit of 30% standard deduction. However, municipal taxes paid by you will be allowed as deduction being directly attributable to income earned.

No. In case of gifting the house to wife, you will still deemed to be the owner of the property in terms of the provisions of Section 25 of Income Tax Act, 2025. Therefore, even wife will become the owner, still income will be treated as your income only.

No, Under new regime, no loss is allowed to be set off from salary. However, under old regime, loss upto maximum Rs. 200000 (Rs.30000 for repair/renovation loan) is allowed to be set off. Under above case loss will be Rs. 358000 but maximum set off from salary income will be Rs. 200000 (old regime)

No. Since a fix 30% standard deduction is already allowed to cover all expenses, separate deduction for any expense like repairs will not be allowed additionally.