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House property in housewife's name

Tax queries 1219 views 1 replies

prabhakar

dy manager

30 Points Joined October 2011

Dear all

I am planning to purchase 2nd house property and get it registered in house wifes name.will i get tax exemtion on interest u/s 24 for loan taken for this property.I will be repaying the loan.
I had read somewhere that the purchaser will be considered as the "deemed owner " even if the property is registered in the name of spouse.

taken from a document of it dept..

Deemed ownership
In the following situations the ownership shall be deemed for
taxing income from house property in view of section 27 of
the Act:
(i) When house property is transferred to spouse (otherwise
than in connection with an agreement to live apart) or
minor child (not being a married daughter) without
adequate consideration (Section 27(i))

pls explain and clarify owner and deemed owner
as i will be the purchaser of the property and get the house registered in my wife's name..
will i get the interest benifit in this condition if this property is let out

thanks in advance..

Replies (1)

Bhavin Bhadra

Job

174 Points Joined March 2010

Section says that if you transfer house property (which is in your name) to your wife without adequate consideration then you become the deemed owner..

While here you are directly registering the property in your wife's name.. so she becomes the owner of house and you dont become deemed owner..

More over benefit of deduction of interest is allowed only to the owner of house property so if you register the property in her name then only she can get the benefit..