Interest allow u/s 24b of income tax act

As such, by plain reading of the wordings, he cannot avail the deduction as he is not owner of the property.

But if you wish, can avail deductions based on apex court verdict: 

For the purpose of section 22, the owner has to be a legal owner. However, the Supreme Court in the case of CIT v/s. Podar Cement (P) Ltd. etc. 226 ITR 625 (SC). held that ‘owner’ is a person who is entitled to receive income from the property in his own right. The requirement of registration of the sale deed in the context of Section 22 is not warranted.

If the whole payment of the property can be established to be paid by SON having possession of the property in his capacity, and the registration in the name of mother can be proved to be for just convenience; you have stand.

thanks sir

Most Welcome

@ Aseem:  As you being co-owner of the house property.......... even if any ratio of ownership not defined between you and your wife...... you can claim 100% deduction of interest u/s. 24b (subject to 2 lakhs limit); if the interest over the LAP is paid by you alone.

The only condition would be the loan amount being utilized in construction of the house property.

For more clarification refer: deduction-of-interest-sec-24b

1. "since the loan is on the rented property cant deduction be claimed without any limit subject to loss from rent -"  Yes on rented HOUSE property there is no limit..... any amount of interest paid over the loan is deductible if the house property which you are going to construct is rented out

2. Here, I suppose there is no loan over commercial property ........... So,  there will be single loan over residential house property to be constructed (i.e. LAP over the commercial property to be utilized for construction of house)....... and there the deduction will be subject to maximum loss upto 2 lakhs...... (after recent amendment)

Though the loan is LAP......... but you can avail section 24b deduction only if you categorize and utilize it for aquiring any HP.

So, all the benefit of the section 24b  can be availed only after the property is ready for use. All the interest paid till construction period will be available for deduction in 5 installments after the completion along with regular interest deduction.

The maximum tax deduction allowed under Section 24 of a self-occupied property is subject to a maximum limit of Rs. 2 Lakhs. Moreover, if the property is not acquired/constructed completed within 5 years from the end of financial year in which the loan was taken, the interest benefit in this case would be reduced from 2 Lakhs to Rs 30,000 only. 

I PURCHASED A HOUSE PROPERTY IN AUG 2017 AND GET LOAN AGAINST THIS PROPERTY (LAP) IN DEC-2017. CAN I CLAIM INTEREST  DEDUCTION  U/S 24B.  HOW MUCH DEDUCTION CAN BE CLAIMED AS PROPERTY IS VACANT.