Interest on housing loan

This query is : Resolved

Jaimin (Querist)
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22 October 2014 Hi
A salaried person has taken housing loan and purchased a house property. The property is purchased in the name of his father who is a retired person. Now the assessee wants to claim deduction of principal and interest u/s 80c and 24 ( b ) contending that the loan is taken in his own name. Can he get the deduction or not? Thanks in advance.

@VaibhavJ

@VaibhavJ (Expert)
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22 October 2014 No he can not claim deduction, pre-requirement is property should be owned by him & Certificate issued by bank should be in his name.

Thanks

CA Mukkul Mehta

CA Mukkul Mehta (Expert)
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22 October 2014 Ownership is the first and foremost criteria which makes assessee eligible to claim deduction U/s 24 (b) & 80C. In this case deduction can't be claimed.

CA Bajrang Jhawar

CA Bajrang Jhawar (Expert)
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22 October 2014 can a person takes a housing loan in his own name and the property is not in his name ?

Jaimin

Jaimin (Querist)
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23 October 2014 Yes a person can. As long as the property is in his relative's name

CA Bajrang Jhawar

CA Bajrang Jhawar (Expert)
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23 October 2014 Thanks i got it,in the legal context we call him co- applicant for the loan who may or may not be different from co- owner.

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