Tax benefit elligibility on home loans
This query is : Resolved
26 September 2007
My father has a house in his name, which we wish to demolish and reconstruct.For this purpose, I and my wife would like to join my father as copartners to apply for a loan from the bank.Can me and my wife be elligible for taking the tax benefit for the interest paid on the share of home loan taken by us? If it is not permitted then what is the cheapest & legal option to go for if me and my wife wish to enjoy tax benefit available on home loans.
arun
arun
26 September 2007
My father has a house in his name, which we wish to demolish and reconstruct.For this purpose, I and my wife would like to join my father as copartners to apply for a loan from the bank.Can me and my wife be elligible for taking the tax benefit for the interest paid on the share of home loan taken by us? If it is not permitted then what is the cheapest & legal option to go for if me and my wife wish to enjoy tax benefit available on home loans.
arun
arun
sivasankar
(Expert)
27 September 2007
Dear Arun,
To enjoy the benefit of home loan inform your father to gift the land to you and to your wife.
On the basis of your name you seem to be from Tamilnadu.If yes you can complete the registration formalities at a flat rate of 15000 only (since its between family members).
Kindly verify with registrar office whether this option is available to daughter in law also.
Then on becoming the owner of the land you can enjoy the benefit of section 24 (interest on loan)and section 80-C(Principal repayment upto 1 lac).
Else you three can form a partnership firm and enjoy the interest alone as expense and not 80-C.
To enjoy the benefit of home loan inform your father to gift the land to you and to your wife.
On the basis of your name you seem to be from Tamilnadu.If yes you can complete the registration formalities at a flat rate of 15000 only (since its between family members).
Kindly verify with registrar office whether this option is available to daughter in law also.
Then on becoming the owner of the land you can enjoy the benefit of section 24 (interest on loan)and section 80-C(Principal repayment upto 1 lac).
Else you three can form a partnership firm and enjoy the interest alone as expense and not 80-C.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Taxation of crypto futures in India Fy 2026- 2027
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- EPF ECR NEW RULES Sep 17th 2026
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
