Srinath Kappgal 23 September 2020
Dear & Respected Friends,
I am Srinath and have income or more than 50 lakhs from Salary. in 2018 Dec, I bought a house (Say House "X") worth 80 lakhs from Corportation Bank in eAuctions (location Bangalore). I have availed loan from same bank of 69.5 lakhs. I have multiple houses with preexisting loan so I am already availing the 2 or 2.5 lakhs Tax exemption on Interest from those.
This property (House "X"). I took it because my Maternal Aunt (Now 74 years old) is not eligible for Housing loan and she agreed to pay the Principle + Interest on her own (She runs a business which is pretty decent). She also agreed to pay the nominal IncomeTax which comes as House rent on my name since I need to show that I have rented out the House "X"). The housing loan is around 61K everymonth.
Now My aunt is asking to make Sale Agreement but retain the loan in my name. She is refusing to pay the nominal IncomeTax.
Question: Is the Sale agreement accepted by IncomeTax as proof and No Income tax is applicable on it? considering that the housing loan premium is paid by my Aunt and on monthly basis? and the source of income for the payment of Income Tax is done from my Aunt and it will not reflect in my book of records as income? Can you help me with section or clause to support me? Is the IncomeTax not being claimed for me on this?