Tax rebate in case of housing loan

210 views 6 replies

swami nath

41 Points Joined August 2018

Property is in name of my wife. She is no source of income. I am co applicant in housing loan not co-owner. Total EMI is paid through my account.
Am I eligible for tax rebate on housing loan?

Replies (6)

Kapadia Pravin

17264 Points Joined December 2018

No sir,
You are not eligible for tax rebate on housing loan and interest EMI's

Sir
housing loan runs in name of co applicant and Bank issues loan certificate in name of co applicant only.
Is it right to issue loan certificate in name of co applicant in the case he is not owner/co owner.

rama krishnan

12244 Points Joined May 2017

I concur with Mr kapadia. in order to eligible to claim deduction of interest on borrowed capital under section 24(b) you need to be either owner or co-owner

Pankaj Goswami

CA-FINAL

422 Points Joined April 2014

To claim rebate on housing loan, you need to see the source of fund, i.e. In realty who is paying consideration for house, it is irrelevant house is registered in your wife name. Their are some court judgements in this regard.

CA. Rohan Somani

Chartered Accountant

94 Points Joined May 2013

As per Section 22 House property should be OWNED by the assessee. Owner can be legal or Beneficial owner. However, cash is transferred to spouse and they purchased property from this amount, the transferor shall NOT BE DEEMED OWNER.

Therefore, in this case husband can not claim Interest paid by him for house property.

However, Section 64 may be seen for clubbing (if applicable). One may note that Income as well loss both are to be clubbed.