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Tax rebate in case of housing loan

03 December 2019

Property is in name of my wife. She is no source of income. I am co applicant in housing loan not co-owner. Total EMI is paid through my account.
Am I eligible for tax rebate on housing loan?

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6 Replies

Kapadia Pravin (17249 Points)
Replied 03 December 2019

No sir,
You are not eligible for tax rebate on housing loan and interest EMI's

1 Like

swami nath (41 Points)
Replied 03 December 2019

Sir
housing loan runs in name of co applicant and Bank issues loan certificate in name of co applicant only.
Is it right to issue loan certificate in name of co applicant in the case he is not owner/co owner.

rama krishnan (12234 Points)
Replied 03 December 2019

I concur with Mr kapadia. in order to eligible to claim deduction of interest on borrowed capital under section 24(b) you need to be either owner or co-owner

1 Like

Pankaj Goswami (CA-FINAL) (422 Points)
Replied 04 December 2019

To claim rebate on housing loan, you need to see the source of fund, i.e. In realty who is paying consideration for house, it is irrelevant house is registered in your wife name. Their are some court judgements in this regard.

CA. Rohan Somani (Chartered Accountant) (94 Points)
Replied 22 January 2020

As per Section 22 House property should be OWNED by the assessee. Owner can be legal or Beneficial owner. However, cash is transferred to spouse and they purchased property from this amount, the transferor shall NOT BE DEEMED OWNER.

Therefore, in this case husband can not claim Interest paid by him for house property.

However, Section 64 may be seen for clubbing (if applicable). One may note that Income as well loss both are to be clubbed.