Deduction u/s 24(b)?

The brothers repaying the Loan Installment shall be eligible to claim the deduction u/s 80C. The Interest paid shall be deductible u/s 24(b) upto Rs. 150000/-.

Regards,

Devendra 

Hi Mr. Sharad

Under IT act, the OWNER of the house property is taxed under the head '' Income from house property''

In the given case Sons are  transferring house property to mother, but since such transfer is not covered in the "Deemed Owner '' U/s 27, therefore "Income under house property" shall not form part of their income. Consequently they cannot avail deduction U/s 24(b), since the deduction is available to owner. In that case deduction can be availed by mother.

Further section 80c provides that: Deduction shall be available in respect repayment of the amount BORROWED by the assessee  Sons i.e. the two sons (payer) can avail deduction under this section.

However deduction cannot be availed twice. Deduction shall be available in any one case only

I agree with  Mr. shreekant

I agree with Mr. Shreekant.

Originally posted by : Shreekant
	Hi Mr. Sharad Under IT act, the OWNER of the house property is taxed under the head '' Income from house property'' In the given case Sons are  transferring house property to mother, but since such transfer is not covered in the "Deemed Owner '' U/s 27, therefore "Income under house property" shall not form part of their income. Consequently they cannot avail deduction U/s 24(b), since the deduction is available to owner. In that case deduction can be availed by mother. Further section 80c provides that: Deduction shall be available in respect repayment of the amount BORROWED by the assessee  Sons i.e. the two sons (payer) can avail deduction under this section. However deduction cannot be availed twice. Deduction shall be available in any one case only

AGREED.

Originally posted by : Shreekant
	Hi Mr. Sharad Under IT act, the OWNER of the house property is taxed under the head '' Income from house property'' In the given case Sons are  transferring house property to mother, but since such transfer is not covered in the "Deemed Owner '' U/s 27, therefore "Income under house property" shall not form part of their income. Consequently they cannot avail deduction U/s 24(b), since the deduction is available to owner. In that case deduction can be availed by mother. Further section 80c provides that: Deduction shall be available in respect repayment of the amount BORROWED by the assessee  Sons i.e. the two sons (payer) can avail deduction under this section. However deduction cannot be availed twice. Deduction shall be available in any one case only

AGREED.

Originally posted by : Shreekant
	Hi Mr. Sharad Under IT act, the OWNER of the house property is taxed under the head '' Income from house property'' In the given case Sons are  transferring house property to mother, but since such transfer is not covered in the "Deemed Owner '' U/s 27, therefore "Income under house property" shall not form part of their income. Consequently they cannot avail deduction U/s 24(b), since the deduction is available to owner. In that case deduction can be availed by mother. Further section 80c provides that: Deduction shall be available in respect repayment of the amount BORROWED by the assessee  Sons i.e. the two sons (payer) can avail deduction under this section. However deduction cannot be availed twice. Deduction shall be available in any one case only

AGREED.

i agree wid shreekant

Thanx for the replies sir....

But whether both sons will be able to claim deductions upto Rs. 1 Lakh each u/s 80C ?

one more thing, for getting deduction u/s 80C for principal, income from property should be taxable u/h IFHP..... since mother is the owner then income is not getting taxed in their hands then how will they claim credit?

As Shreekant says that the deduction is available to the owner then the things are clear. Mother only can avail benefits of Section 24 and Section 80C.

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If you look at the procedural part things will automatically become clear. Interest U/s 24 has to be claimed from the Income of the  House Property. Whether it be a SOP or let out. Here the property does not belongs to the sons hence they can not claim deduction U/s 24.

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For getting deduction U/s 80C the condition is purchased or constructed is assoicated again with the chargeability of Income under the head IFHP in the hands of the assessee.

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In this case since loan is taken by the sons so certificate of interest, which is the enabeling instrument, will be issued by the bankers in the names of the borrowers only, hence mother can not calim the entitlement of interest deduction.

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