Home loan deduction

Amit (Accountant) (261 Points)

16 December 2014  

I am planning to contruct a house. To get deduction of principal re-payment of loan u/s 80C,  the loan has to be from a recognised source. However, this condition does not apply for payment of interest u/s 24. So, my question is, can I take home loan from my wife and pay interest to her and claim deduction of interest u/s 24 within the stiputed limit of Rs. 2 lacs? 

Thx in advance