Co-applicant in Home loan

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Meghna (Querist)
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21 July 2021 If Father purchase Property and he is the owner of property and Daughter is only Co-applicant for Home loan then what would be tax treatment in hands of daughter when property gets sold in future . is daughter gets tax benefit for repayment of loan and interest component .

Or Father can get benefit u/s sec 54 (Old property sold )for in case Property is in name of Daughter.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 July 2021 Only father gets tax benefits as he is the owner of the property.
No, property should be purchased in father's name. Can be purchased in joint names.

Shri Chitrang M. Dave Vs DCIT (ITAT Ahmedabad)
The Ahmedabad bench of the Income Tax Appellate Tribunal ( ITAT ) has held that the benefit of capital gain exemption under Section 54 of the Income Tax Act, 1961 cannot be denied to a joint owner who made the total investment in the purchase of the property.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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23 July 2021 For claiming benefit by daughter, both daughter and father are required to be joint owner of house and co-applicant in home loan. Any one condition do not suffice to claim exemption by both.

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