Home loan interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2012 My friend bought a house in name of his wife. He also took loan in wife's name. She is housewife but he is repaying principal & interest from his account. Will he get benefit of Interest & Principal? If not, then wot formality to be done to get the benefit. Thanx in advance.

Pankaj Gupta

Pankaj Gupta (Expert)
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01 October 2012 No benefits can be claimed by your friend. Although the house is legally in the name of your friend's wife , but for income tax purpose your friend will be treated as owner of the house. Therefore no benefits.

Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2012 Dear Pankaj, your answer is not clear. plz elaborate it.

Pankaj Gupta

Pankaj Gupta (Expert)
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03 October 2012 It is a case of transfer of property. And any transfer by spouse without adequote consideration is clubbed back in the income of the transferer. Hence for income tax purpose your friend will be treated as the owner of the house property and all exemptions/income from such house will be treated in the hands of your friend.
Hence your friend can claim the principal and interest as deduction from his income.

Pankaj Gupta

Pankaj Gupta (Expert)
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03 October 2012 Please let me know if you want further clarifications.....

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