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Tax saving help on home loan interest

Tax queries 283 views 1 replies

Swetank Shekhar

Others

24 Points Posted on 14 July 2015

I am a govt. employee working in new delhi. I claim HRA rebate and I stay in a rented accomodation in delhi. I bought a flat in Kolkata in 34 lacs in February 2013. I took a loan of 27.7 lacs for the same property. I have already made a prepayment of around 6 lacs and the principal amount left against this home loan is around 20 lacs. The property and the loan is jointly shared by my father. Since february 2013, the newly baught flat is self occupied. I am paying the entire loan from my account, although in the loan document and the property document my fathers name is mentioned. My father is working and he pays his taxes. Can i claim the relaxation in taxes due to interest paid against this loan entirely ? My father is not claiming any relaxation in taxes on principal and loan interest. can you suggest some tax planning against this loan ?

Replies (1)

Vishal Goel

Chartered Accountant

1693 Points Posted on 16 January 2016

Hello,

Yes, you can claim income tax exemption if you are a co applicant in a housing loan as long as you are also the owner or co owner of the property in question. If you are only person repaying the loan, you can claim the entire tax benefit for yourself (provided you are an owner or co-owner). You should enter into a simple agreement with the other borrowers stating that you will be repaying the entire loan. If you are paying part of the EMI, you will get tax benefits in the proportion to your share in the loan.