Tds on home construction loan while property is father name
This query is : Resolved
Deepak Maheshwari
(Querist)
02 April 2013
Hi All,
Please clarify, If i take construction loan for my father property will i be eligible for tax rebate from my salary income.
Regards
Deepak
Please clarify, If i take construction loan for my father property will i be eligible for tax rebate from my salary income.
Regards
Deepak
Deepak Maheshwari
(Querist)
08 April 2013
Please revert
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:
---
### 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.
---
### 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.
---
If you want, I can explain how to structure the ownership or draft an agreement for co-ownership to claim benefits. Need help?
---
### 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.
---
### 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.
---
If you want, I can explain how to structure the ownership or draft an agreement for co-ownership to claim benefits. Need help?
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