Tax benefit

Who is the owner of the property?

Dear Nikita,

The deduction of Home Loan Interest is available under section 24b of Income Tax Act, 1961. As per which  the assessee is required to furnish a certificate, from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by the assessee for the purpose of such acquisition or construction of the property, or, conversion of the whole or any part of the capital borrowed which remains to be repaid as a new loan.

In case you have taken the loan on joint name and the banker gives the certificate of interest in joint name then he can definately claim the deduction provided u have not disclosed the share of each joint owner in the registery papers. Otherwise he will be eligible for his share only.

Regards

Rohit Gupta

RHT1203 @ GMAIL.COM

We are joint owners of the property but the loan is in my name only.

Dear Nikita

As I mentioned earlier as per Section 24(b) the assessee is required to furnish a certificate, from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by the assessee for the purpose of such acquisition or construction of the property, or, conversion of the whole or any part of the capital borrowed which remains to be repaid as a new loan.Then the Bank/ FI will never issue the certificate on your husband's name. so no deduction will be available.

Regards

Rohit Gupta

RHT1203 @ GMAIL.COM