Deduction u/s 24(b)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2014 If the assessee (a private employee) obtains loan for the house property from bank, but the repayment during the year was made by his mother and not the assessee.Then who between them will be eligible to get the deduction ??

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 December 2014 Deduction is available for the assessee only.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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21 December 2014 Deduction for Interest and principle can be obtained by Son only since the loan in the name of son.

payment can be made by any person but deduction is allowed to person who has obtained the loan .

Rupesh Jain

Rupesh Jain (Expert)
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22 December 2014 DEDUCTION NOT AVAILBALE TO SONS AND MOTHER ALSO.
FOR DEDCUTION AMOUNT PAID BY THE OWNER OF THE PROPERTY.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 December 2014 for claiming deduction u/s 80C and sec 24B the person should be owner and also must avail loan and must pay int and loan which must be utlised for either purchasing or constructing the new house in his name.

in this case private employee being assesee has only obtained loan but not paid by him so he is not eleigible as it was paud by his mom.

further mom is not eligible in this case.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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22 December 2014 Transaction Within mother and son there is inter loan entry, which can be repaid in future date or can be treated as gift given by relative within section 56(2)(vii).
Both these two transactions have no implecations under income tax act

Therefore, loan Repayment made by Mother can be claimed as deduction under section 24(b) of Income Tax Act, 1961 by Son.

Further, same treatment is also valid in case payment by Wife on account of Husband or vise-versa.

I would like to be counter my opinion by other experts on panel.