House loan

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rohit (Querist)

11 December 2012 a is a lady aged 60 years has 3 son(b,c,d) and 3(e,f,g) daughter in law in her family. She purchased a house in 60.00 lacs. She has not enough fund so all the other family members also contributed for the same but house was registered in the single name A. Further they take home loan for the purchase and construction of the same house in the joint name a,b,c,d,e,f,g of rs 75.00 lakhs. Further they all are jointly repaying the home loan. now a,b,c,d,e,f,g all want to take benefit of sec 24 (Interest on borrowed capital) and sec 80C (Principle repayment of housing loan) Is it possible and what additional arrangement they should do for taking such benefit. keep in mind Mrs A is sole person in which name property is registered.

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Amol S Joglekar

Amol S Joglekar (Expert)

11 December 2012 01. I take it as purchase of plot at 60 lakh and housing loan of 75 lakh for the construction of house. Is it ok? (else giving a loan of 75 lakh for 60 lakh property may lead to SUBPRIME issue?)
02. Sec 24 is property specific and hence no deduction be claimed for interest on housing loan by b to g. A can very well claim the interest.
03. 80 C is bit liberal. In the initial years, the benefits may be claimed under the pretext of "house is being constructed"

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