Income tax deduction for Interest on Home Loan

Dear Members/Experts,

You query has make me think little more.

Is it possible to get loan in name of person other than registered owner?

Refering to Section 27 clause (i)

1) You have not transfered any house property.

2) No question of deemed owner in case of above clause.

and 64(1) clause (iv),

1) you have transfered an assets (funds in form of Loan principle amount + something you are having of your own funds) 

2) if the above funds are invested as per explaination 3 to the above section then the income on such investment will be taxed to the amount as explained in explaination. 

I doubt;

1) What will be the clubbing amount?

2) Wether is there any case law on such situation?

3) Does my understanding is true?

Regards

First this situatuon is not possible practical since loan is advanced to the owner of the property.

In Case of Co-owners, Co-Applicants are always co-owners but co-owners may or may not be co-applicants.

I taken home loan of Rs. 10 lakhs (in instilments during 2003-2005 as per the demand from CGHS) from Canara bank in 2003 for five years and started to repay the EMI from very next month in July 2003 . The whole balance loan was paid at the time of my retirement in June 2006. However due to none of our fault and even of the society the house was not allotted for the want of clearance from Registrar though apartments were ready to move in . Finally last month in October draw was held by DDA and we may get the possession of flat in this financial year. Can I get the tax deductions in equal installments on the tax paid on the loan and principal in next few years? I read somewhere that I can divide this into five installment and claim the deduction after getting the possession of the flat. I shall appreciate for your advise.

"	Dear Nitin, Thanks a lot for your reply. Just to let you and others know, there are some complexities involved. As per loan documents, i am primary applicant and my wife is co-applicant. I could take the interest benefit in my wife's return. However, the only issue is that all EMI are being paid trough my account. Which means, even though she is owner, but payments are made by me. In this situation, will she be allowed the income tax benefit????? Kindly let me know what all possible solution available in these circumstances. For  your convenience, facts are specifued below- Home Loan: Primary applicant :myself, Secondry applicant: My wife Registery: Only in name of my wife EMI: Charged through my account.	"

 

Hi ,  

From April to Aug 2008 I stayed in a rented flat. in month of August I moved to my new flat.

Now my question is can I claim full intrest 1.5 lac 24b  and full principle under 80c along with HRA exmption for April to August.

I'm going to attach the rent aggrement along with rent recipts , and also provisional tax certificate from housing finance  for year 2008-2009.

Pls confirm , that ,my understanding for Home loan expection is correct along with partial HRA for the same year.

Regards

Ashok

Yes,  you can claim for both. You can calculate your income tax at https://www.payit.in
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