18 September 2009
1. If the property is in the name of the parents and the loan has been taken by their son, then is the deduction of Interest on the loan available for the son under the head house property.
2. If the Intt. deduction is not available to the son then can the parents claim it. But, they have not taken the loan, their son has.
19 September 2009
UNDER THE HEAD INCOME FROM HOUSE PROPERTY , THE CHARGEABILITY SECTION 22 STATES THAT THE HOUSE MUST BE OWNED BY THE ASSESEE THEN SUCH IS TAXABLE UNDER THIS HEAD.
THEREFORE AS THE LOAN TAKEN BY SON AND HE IS NOT THE ACTUAL OWNER OR DEEMED OWNER OF SUCH HOUSE PROPERTY THEREFORE DEDUCTION OF INTEREST ON LOAN U/S 24 IS NOR ALLOWED TO SON OR TO HIS PARENTS ALSO.
20 September 2009
Thanks Puneet ji, what happens if the Son now gives a loan to his parents of the above amount in cash by executing an agreement, then the parents would be allowed the deduction or not? If yes, then what are the documents to be made in this regard for loan in cash, as bank transaction for the last year are already done.
CAclubindia
