Interest on housing loan

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This query is : Resolved

Jaimin (Querist)

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)

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)

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)

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)

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)

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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