Sivakumar (Costing) (24 Points)
27 March 2012Dear all..
i have one doubt regarding exemption on interest on housing loan.
i borrowed housing loan from nationalised bank from my mom's name but myself repaying interest with principle from last two months.
my mom is home taker and there is no other income except pension & it is comes under taxable limit.
Is it possible for me to take exemption for the interest on housing loan from my taxable income?
Pls assist me.
Sonam Bidasaria
(CA)
(770 Points)
Replied 27 March 2012
Mihir
(Wealth Manager)
(5293 Points)
Replied 27 March 2012
CA Ankit Totla
(Practicing Chartered Accountant)
(469 Points)
Replied 27 March 2012
Shivkumar,
You have erred in the planning. you can not avail any benefits now from this.
Rup Kumar
(finance manager)
(288 Points)
Replied 27 March 2012
No benefit for U, but available for your mother.
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8310 Points)
Replied 27 March 2012
CA.Vinita Gupta
(Deputy Manager- Finance)
(2918 Points)
Replied 27 March 2012
CA Raghav Swaminathan
(B.com, CA )
(48 Points)
Replied 28 March 2012
If u really wanna make use of tax benefits, transfer the title deeds in favour of you by executing gift deed.(Remember, any gift between relatives is exempted from tax). once the property is registered u can avail the benefits.
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 28 March 2012
YOU HAVE TAKEN LOAN IN YOUR MOM NAME,SO THAT YOUR MOM CAN TAKE TAX BENEFIT ONLY.NOT YOU
vivekananda reddy
(ca)
(37 Points)
Replied 28 March 2012
mr.sivakumar,
u may get the benefitte like this way...
if mom transfor the property on ur name,automatically ur liable to pay the house loan....
so u can gat the tax benefitte at that time only....
and this only the wat to get the tax benefitte...
gud luk
Soubhagya Kumar Patra
(Director)
(66 Points)
Replied 28 March 2012
Dear All,
If the title is getting transfered from mother to son, there should be an intention right..??? if it is a gift, will there be any tax implication on this gift.
@ Raghav, you mentioned "Remember, any gift between relatives is exempted from tax". Is it fully exempted..???
Thanks in advance..
Ramil (CA,L.L.B.)
(Taxation)
(147 Points)
Replied 28 March 2012
Dear
You did the wrong planning.
As per the provisions of the Income tax Act,
Interest on loan (Under house property) and Principal amount deduction (u/s 80 C) can only be claimed by the Owner of the property i.e. the person whose name appears in the title deed.
Now Solutions :
Your mom can transfer the property to you as a gift. Since as per provisions of Sec 56 " Any gift received from the relative is out of purview of taxation" so no taxation liability will arise. Once the title deed is in your name then you can claim the Interest as well as Prinicipal amount of housing loan (paid by you) in you income tax return.
So Plan in advance.
If there is any doubt then you can ask ......
Pooja Jindal
(Student)
(36 Points)
Replied 28 March 2012
For taking any deduction or income under the head house property,assessee should be the owner of house property.
For taking deduction of interest on loan taken for acquisition or construction of house property , following condition should be fulfilled
1) Assesee should be the borrower and there must exist real one to one relationship between borrower and lender.
2)Assessee should be owner of house property.
3) The borrowed fund should be used for acquisition or construction of house property.
CAclubindia
