Deduction u/s 24(b) and 80c of the i.t. act, 1961.

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This query is : Resolved

Shanth Raj B (Querist)

26 August 2014 Sir,
Assessee has purchased a house property in his name and has availed housing loan for the same.
Now, the assessee has shifted to abroad.

Queries:
1. Can the brother of the assessee claim deductions u/s 24(b) and 80C of the I.T. Act, 1961 if he repays the loan?
2. Is there any other alternative?

Thank you.

Amol S Joglekar

Amol S Joglekar (Expert)

26 August 2014 No The brother can NOT claim although he might be repaying the loan of his brother.
Alternative? I could not understand..... is your decision TAX benefit based?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 August 2014 Only the assessee has to avail deduction by filing return. For repayment of loan either he can remit the amount from abroad or take a loan from brother.

Shanth Raj B

Shanth Raj B (Querist)

26 August 2014 Sir,
What are the taxation consequences if the assessee gifts the house property to his brother?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

26 August 2014 No tax will be levied for gifting the house to brother.

Shanth Raj B

Shanth Raj B (Querist)

26 August 2014 Sir,
Yes, gifts made to relatives are not taxable. So, once the assessee transfers the property to his brother through gift, will the brother be able to claim the deductions in question assuming that the loan is taken over by the assessee's brother?

Rupesh Jain

Rupesh Jain (Expert)

26 August 2014 no brother cannot take the deduction of 24 and 80C for loan .

if you give the gift to brother and loan tfr in brother name then brother take the deduction.

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