Tax benefit elligibility for home loans

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arun

Govt. officer

46 Points Joined September 2007

My father has a house in his name, which we wish to demolish and reconstruct.For this purpose, I and my wife would like to join my father as copartners to apply for a loan from the bank.Can me and my wife be elligible for taking the tax benefit for the interest paid on the share of home loan taken by us? If it is not permitted then what is the cheapest & legal option to go for if me and my wife wish to enjoy tax benefit available on home loans.

arun

Replies (2)

CA.Saibaburao Nanduri

Chartered Accountant

3847 Points Joined May 2007

Assuming that you and your wife are working, your father may gift the property to you and to your spouse. Then you both will get unfettered right over the property. Then both can apply for a bank loan, as co-owners, and get the loan. Both of you can enjoy the tax benefits.This is the simple and clear cut way. way

Guest

441305 Points Joined August 2012

I think your problem is the bankers are refusing to give Loan to your father because of his age. If your father gifts 2/3 rd of the property to you and your wife each will get 1/3 share then you can apply for loan and all will get one third share in interest payment and loan repayment in your personal returns. however if you do not feel that this option is viable, then become a co-obligant to the loan borrowed by your father. co-obligant and not the second borrower. your father can claim tax benifits