09 May 2013
A person want to take loan for the renovation of his house but the house is registered in the name of his father.
So if the above person take power of attorney for the said house rather than purchase it or taking gift from his father, then whether he can claimed deduction of interest under income from house property.?
I asked the above question on the ground that the person with power of attorney has full right to sell, rent, construct, alter etc. i.e. the rights equal to the rights to the owner.
10 May 2013
Deduction for Interest on loan under section 24(b) is a deduction from Rental Income and is only available to the owner of the house. The Rental Income,if any, is taxable in the hand of "Father" and only "Father" can claim the deduction against such Rent/Zero rent.
I think holding power of attorney will not make the son owner of such property and the Son would not be eligible to claim the deduction.
Please suggest any alternative to claim deduction by son. I mean how the son become owner of the property which involved less expenses then in gift or purchases from father?
CAclubindia
