If a husband buy a flat in the name of wife and makes her the only owner but takes loan in name of him and keep his wife as co applicant in loan. Loan was sanctioned based on husband's income as wife is not earning.
Is Husband is eligible for deduction in income tax on his income for housing loan for all the sections were ever deduction is available.
note husband is not the owner of property but main applicant in housing loan.
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Husband is eligible for Deduction u/s 24 for the property owned by wife.
Replies (10)
Due to clubbing of income under income tax act, he will be deemed owner of the house, and as such all the income with deductions, if any; will be declared in the ITR of husband only.
As such he can claim the interest deduction if he pays EMI himself..
Only problem is ITO may not accept it.
Nor necessarily
Sir can you please support with any case law or section in which it has been quoted as my c&ag auditor is not accepting i have also told him the same thing
First clarify how the payment was made, through husband's bank account or through wife's bank account.
Sir husband's salary account
Though husband purchased the house in name of wife, as he financed it he becomes the owner of the house, The income from the house property should be declared in Husband's ITR, as such he can claim the deduction u/s. 24 of the act.
The problem is ITO may not allow it as the property is JUST in the name of his wife.
Sir is there is any case law on this
No case law, its simple interpretation of the section/s as per IT act.
Sir can husband pay rent for the property owned by wife and avail exemption of HRA
Under certain conditions.... YES.
The Income Tax Appellate Tribunal, Delhi, recently ruled that House Rent Allowance (HRA) exemption under the Income-Tax (I-T) Act, 1961 cannot be denied on the ground that the assessee paid rent to his spouse. The ruling said that the wife is a doctor who possesses the resources to purchase a house, as is apparent from her income-tax return.
If someone‘s wife is earning and the house is solely owned by her then he is entitled to get HRA exemption, if paying rent on a monthly basis and getting receipts. But, in case his wife is not earning, then he can’t claim this provision since the incomes of the husband and wife would then get clubbed.
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