Rebate u/s 24 of IT Act

This query is : Resolved

Saurabh (Querist)
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13 April 2009 Dear colleagues,

Pls. tell me that in the following situation can i get rebate u/s 24 of IT Act.
Interest on Housing Loan :

Facts are:

I have a plot in my father's name.
Plot is registered in my father's name.
Plot has been purchased by my father by his own money.

I do not want to transfer/register this plot in my name.
Now i want to construct it taking loan from bank.
I & my brother will take the loan as MAIN BORROWER & my father as CO-BORROWER.

I & my brother will Repay the loan from our personal bank accounts.

Can i & my brother will take the benefit & claim deduction u/s 24
Interesr on housing loan & what extent.
i.e if I & my brohter paid intt. rs. 150000 each total intt. 3000000/- then both claim deduction of rs. 1500000/- each or not.

Your valuable suggestion will help me about this matter.

Thanks & Regards.
CA Saurabh

parthasarathy

parthasarathy (Expert)
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13 April 2009 Dear sir, the first thing to know is....whether you bought the plot in your father's name...i mean have you shown the purchase of the plot in your i.t. return. it may be registered in your father's name....its no worry.

next...assuming you have bought the plot.... if you take a housing loan from a bank for construction...only you can claim deduction u/s 24 of i.t. act. the sole owner of the plot as per income tax dept...is you alone. hence your brother has no share in the said property, so even if he takes joint loan with you...he cannot claim the deduction.

hence you can claime deduction upto rs.1,50,000/- if the proposed house is self occupied. your brother cannot.

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