IFHP & clubbing provision

 hello,

As per IFHP, if an individual gifts money to his spouse or minor son/ daughter(not a minor married daughter) & from that money a house property is purchased by  his spouse or minor son/ daughter(not a minor married daughter) then IFHP wud b taxable in hands of  spouse(& not in hands of individual)..but because of application of clubbing provision, income so assessed will be taxable in hands of individual himself...as she is d deemed assessee..BUt if suppose, if an individual gifts money & from that money & by taking a loan for acquisition, she purchases a house which is self occupied by her then she wud be d owner & she wud get deduction for interest on loan taken u/s24...which wud be her income from house property...now bcs of clubbing provision, this income wud be clubbed in hands of individual(transferor)...

SO my question is will that individual get d benefit of deduction of int on loan capital?

eagerly waiting for ur answers..

Replies (1)

Dear Manasvi,

First of all it is not clear that Loan repayment will be made by Wife out of her own income or from the income of her husband.

In this first case that is if loan repayment is made by husband, then the entire income will be clubbed in the hands of husband & deduction of interest will be allowed beacuse clubbing is done by computing the income in the hands of the receiver(as if it is taxable in the hands of receiver) and then the amount is included in the hands of other person.

 

 

If the repayment is done by wife out of her own income than my friend a proportion of property belong to husband(to the extent of money given by him) & balance belongs to wife (to the extent of amount of loan)..Computation will be tricky in this case, but interest on Loan will be available to wife only & not to the husband.

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details