27 July 2025
Hey! Here’s how it works with **home construction loan and tax benefits** when the property is in your father’s name:
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### Key points:
1. **Who is the borrower?**
* If **you have taken the loan in your name** (even if the property is in your father’s name), then you **can claim the tax benefits** on the loan repayment under **Section 80C (principal repayment)** and **Section 24(b) (interest payment)**.
2. **Property ownership vs Loan ownership:**
* The **tax benefits are allowed to the person who is legally paying the loan** (borrower) and **also the person in whose name the property is registered** (owner). * So, if the property is in your father's name but the loan is in your name, generally **both you and your father can claim tax benefits proportionate to the ownership and loan payment**, but **this requires co-ownership or some agreement**.
3. **No co-ownership means no benefit for you:**
* If the property is solely in your father’s name and loan is in your name **but your father alone is the owner**, there might be complications in claiming full benefits. * Usually, **you need to have some ownership interest or be a co-borrower** for the tax benefits to be fully allowed.
4. **TDS on home loan?**
* There is **no TDS on home loan repayment**. Tax benefits are claimed when filing ITR.
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### Summary:
* If **you took the construction loan in your name**, even if property is in father’s name, you can claim deductions subject to ownership rights. * If you want full tax benefits, ideally, you should have **co-ownership or a proper agreement** with your father. * No TDS is deducted on loan payments; tax benefit claims happen at the time of filing returns.
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If you want, I can explain how to structure the ownership or draft an agreement for co-ownership to claim benefits. Need help?
CAclubindia
