Home Loan Deduction

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Lalit Kheterpaul

Student

38 Points Joined June 2016

If Mr.A taken home loan of Rs.15,00,000/- & the pledge property is on his Son's name Mr.B, both are earning persons. Mr. A having taxable income is Rs.8 lac and Mr.B under 3 lac.

Mr. B is only co applicant in loan, because the property is on his name. The main applicant is Mr.A

My question is
Can Mr. A take home loan benefits deduction under section 24(b) and 80C.

or

Both can get tax benefits

or

Only Mr. B can take tax benefits

Please help

Replies (3)

CA Manish Jathliya

Professional

401 Points Joined October 2012

for claiming the tax benefits on the property:

1. You must be a co-owner in the property

2. You must be a co-borrower for the loan.

(You may have taken the loan jointly, but unless you are an owner in the property – you are not entitled to the tax benefits)

So only B is Eligible to claim deduction and income from House Property in this case (as House Property Register on B Name and Loan Also).

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Sin only eligible to claim House Loan Deduction in the above said query.

Shivam RC

Student

23688 Points Joined November 2017

If the new House Property is on Son's name ( Mr. B ), then only Mr.B can claim deduction u/s 24(b) of the Income Tax Act 1961 towards Interest portion of Loan ( upto Rs. 2,00,000 if Self-Occupied ) and claim Deduction under Section 80C of the Income Tax Act 1961 towards repayment of Principal Amount of Loan ( upto Rs. 1,50,000 ).