Interest deduction u/s 24... URGENT

This query is : Resolved

saurabh (Querist)
Follow

18 September 2009 1. If the property is in the name of the parents and the loan has been taken by their son, then is the deduction of Interest on the loan available for the son under the head house property.

2. If the Intt. deduction is not available to the son then can the parents claim it. But, they have not taken the loan, their son has.

Please answer this query ASAP.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
Follow

18 September 2009 The parents can claim the deduction stating that the son has raised the loan and given to parents and parents are inturn repaying that loan and interst. Proper documentation has be made, then you can claim the interest in the file of parents.

Message likes : 1 times

saurabh

saurabh (Querist)
Follow

20 September 2009 Thanks for the reply, but in the bank statements of 2008-09, no loan has been taken by the parents. Can i show this loan in cash, or that the loan was taken on behalf of the parents?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

21 September 2009 You have to clarify the purpose of loan.
As you want to deduct the loan from property income, it might have been taken
for the purpose of construction or purchase of property.

If you can show that the parents have allowed the son to construct the property and he is owner of the super structure, then deduction can be claimed for interest by the son.

If son has contributed in purchasing the property in the names of his parents, he may show interest paid to bankers as amount receivable from parents alongwith the amt of loan actually raised. Parents in such a situation would repay the amt to son by cheque. Bank loan as per statement is the liability of son and amt receivable from parents will be his asset.Question of providing loan in cash will not arise.

Proper documents in both the cases are
required to be created.

Message likes : 1 times

saurabh

saurabh (Querist)
Follow

21 September 2009 Thanks a lot for your expert advices.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Dhananjay Singh

Hmr Babu

Mikilesh Shah

CA Jyoti Singh

Phani

Subscribe Now

Interest deduction u/s 24... URGENT

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANT

Accountant

CA Final

Article Assistant

GST CONSULTANCY

Manager- Finance and Compliance