Deduction for House property in the name of wife

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This discussion explores claiming tax deductions for a house property registered in a wife's name, particularly when the husband pays the mortgage. While the Income Tax Department might raise objections, case laws suggest it's possible to claim deductions under Section 24 (interest) and Section 80C (principal) if all payments originate from the husband's account. However, if the loan isn't in the wife's name, she cannot claim deductions, and if the loan is in the husband's name, he cannot claim them as he isn't the owner.

Daya

Daya (Querist)

07 August 2023 whether deduction can be availed if the house property purchased in the name of wife.
Deduction for interest paid under section 24 of Income from HP Rs 2,00,000/-
Deduction for principal amount under section 80C Rs. Upto 1,50,000/
If Payment made by Husband from his income and EMI to be paid by Husband.

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

07 August 2023 You may claim if all the payment to purchase the HP is made through husband's account; though there would be objection raised by ITD.
For your information there are case laws favoring assesses who have purchased properties in name of their spouse and claimed deductions as per IT act.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

07 August 2023 If loan is not in the name of Wife, she cannot claim deduction for interest and principal repaid.
If loan is in the name of Husband, he cannot claim deduction for interest and principal repaid since he is not the owner of the house property.

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