Deduction of interest on borrowed capital under H/P

This query is : Resolved

saurabh (Querist)
Follow

18 September 2009 1. If the property is in the name of the parents and the loan has been taken by their son, then is the deduction of Interest on the loan available for the son under the head house property.

2. If the Intt. deduction is not available to the son then can the parents claim it. But, they have not taken the loan, their son has.

Please answer this query.

CA Puneet Jethliya

CA Puneet Jethliya (Expert)
Follow

19 September 2009 UNDER THE HEAD INCOME FROM HOUSE PROPERTY , THE CHARGEABILITY SECTION 22 STATES THAT THE HOUSE MUST BE OWNED BY THE ASSESEE THEN SUCH IS TAXABLE UNDER THIS HEAD.

THEREFORE AS THE LOAN TAKEN BY SON AND HE IS NOT THE ACTUAL OWNER OR DEEMED OWNER OF SUCH HOUSE PROPERTY THEREFORE DEDUCTION OF INTEREST ON LOAN U/S 24 IS NOR ALLOWED TO SON OR TO HIS PARENTS ALSO.

saurabh

saurabh (Querist)
Follow

20 September 2009 Thanks Puneet ji,
what happens if the Son now gives a loan to his parents of the above amount in cash by executing an agreement, then the parents would be allowed the deduction or not?
If yes, then what are the documents to be made in this regard for loan in cash, as bank transaction for the last year are already done.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

mahendra zaveri

sachidanandam

S D Kannan

SARAVANAN PALANISAMY

Srikanthan S

Subscribe Now

Deduction of interest on borrowed capital under H/P

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA