Hosing loan in financial statement

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CA Shyam Agarwal (Querist)
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03 June 2016 Respectable Experts

A person purchased a house with the name of his wife, but loan was taken with the name of husband and repaying the loan and interest also by husband, although wife is also joint borrower.
My question is

1. Who will take the benefit of principal repay u/s 80C.
2. who will take the benefit of Interest repayment (income from house property).
3. In which balance show the housing loan either husband of wife. or 50% in both balance sheet.

Thank You

Amol S Joglekar

Amol S Joglekar (Expert)
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03 June 2016 For all the three questions : in the proportion of ownership.

CA Shyam Agarwal

CA Shyam Agarwal (Querist)
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03 June 2016 How to decide the ownership. Because Housing property is with name of his wife only.

Amol S Joglekar

Amol S Joglekar (Expert)
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03 June 2016 then? she is 100% owner.? What is the problem?

CA Shyam Agarwal

CA Shyam Agarwal (Querist)
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03 June 2016 ACTUAL PAYMENT WAS MADE BY HUSBAND NOT WIFE. AND PAYMENT WAS MADE VIA BANK WHICH IS WITH THE NAME OF HUSBAND.
IF I TAKE THE BENEFIT OF 80C AND LOSS OF HOUSE PROPERTY IN HUSBAND FILE AND CASE SELECT FOR SCRUTINY THAN A.O. WILL ASK ABOUT HOUSING PROPERTY WHICH IS WITH THE NAME OF WIFE NOT WITH THE NAME OF HUSBAND. HE CAN INVOKE PENALTY.

Amol S Joglekar

Amol S Joglekar (Expert)
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03 June 2016 Please note, Income tax Act has DERECOGNISED benami transactions w.e.f.1986.
So dont get yourself unnecessarily confused with the ownership of MONEY versus ownership of property.
The benefits like 80C, interest on loan etc are associated with OWNERSHIP of property and not with ownership of funds.
Your views please.

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