Deduction of housing loan repayment

This query is : Resolved

shivbhadra (Querist)
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26 December 2014 ONE PERSON(HUSBAND) HAS REPAID THE HOUSING LOAN WHICH HAS TAKEN IN HIS NAME, BUT THE PROPERTY ,FOR WHICH THE LOAN HAS BEEN TAKEN, HAS BEEN REGISTERED IN THE NAME OF HIS WIFE?

IS DEDUCTION U/S. 80C & 24 HAS BEEN ALLOWED TO THE PERSON(HUSBAND) OR NOT?

& WHAT IF HIS WIFE HAS SUFFICIENT INCOME OR DOESN'T HAVE?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 December 2014 Deduction will not be allowed when the property is in the name of wife.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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26 December 2014 Deduction under section 24(b) will be allowed. The Transaction between Husband and wife Inter loan transaction or it can be treated as gift from relative withing definition of relative under section 56(2)(vii). Both above Treatment have no Income Tax Consequence at all.

Further, meaning of loan doesn't only means taking from someone and then paid to third party but also include paid directly to the third person withing provision of Indian Contract Act 1872

Therefore, Deduction under section 24(b)will allowed to wife on payment made by his husband.

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