Housing loan

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Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2016 IF HOUSING LOAN IS BORROWED BY A PERSON. LOAN STATEMENTSHOWING THE NAME OF BORROWER AS HIS SON, AND PERSON'S NAME IS SHOWN AS CO-BORROWER. AND ALL THE REPAYMENT IS DONE BY HIS SON. HIS SON IS SALARIED PERSON. CAN WE CLAIM HOUSING INTEREST + PRINCIPAL REPAYMENT IN INCOME TAX DEDUCTION IN PERSON A/C.

Ruchi

Ruchi (Expert)

13 August 2016 What is the ownership status?

ajay jain

ajay jain (Expert)

13 August 2016 Owner (s) of the property can take benefit of Interest on Housing Loan and Repayment of Principal amount.of Housing Loan. Bank may write Borrower and co borrower name as they suit

ABDUL RAUF MOMIN

ABDUL RAUF MOMIN (Querist)

14 August 2016 ownership is in the name of father

Ruchi

Ruchi (Expert)

15 August 2016 Mr. Momin
Income tax deduction is available only to the person who is owner of the property as well as borrower of the loan. The son cannot claim deduction as he is not the owner. As far as father is concerned, he is owner as well as borrower( or co borrower). But he has not paid the instalments. All the paymemts are made by the son. Because of that he may not be able to claim the benefit. What can be done here is that the father can show the amount paid by the son towards EMIs as loan taken from him. That way the father can claim the deduction rightfully.

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