Benefits of LAP

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This discussion explores the tax implications of a Loan Against Property (LAP) for a salaried individual. The user is inquiring whether their wife can add the LAP interest to the acquisition cost of her under-construction flat. Additionally, they want to know if they can claim interest deductions under Section 24b or 80EEA for a fully constructed, vacant flat in their name, or add it to the acquisition cost. Suggestions for reducing tax liability are also welcomed.

Manish Gu

Manish Gu (Querist)
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31 August 2025 I am a salaried employee with no business income. I have a Loan Against Property, which is used to buy property in the name of my name and in my wife's name.

As my loan is a LAP and not a Home Loan that too in my name -
Q1. Can my wife add the Loan Interest to cost of acquisition for her under-construction flat cost.
Q2. Another flat is fully constructed and is in my name. This flat is not on rent and I do not live in this flat - Can I claim the interest under section 24b and or 80EEA or add this to cost of acquisition

I am open to receive any other suggestion to reduce my tax liabillity