Home loan co - borrower

This query is : Resolved

Bon Saha (Querist)
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09 April 2016 I work in a public sector bank . I am planning to take a staff housing loan from my bank with my father as

co- applicant,The entire loan amount including principal and interest will be borne by me. My father is a retired state

govt employee and i am the only daughter of my parents and i have no siblings and i am not yet married. However

my father is the sole owner of the land on which the house is to be constructed. Can i claim tax benefit under

Section 80C and Section 24 ? Please reply.

CA ANILKUMAR B.COM ACA DISA

CA ANILKUMAR B.COM ACA DISA (Expert)
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09 April 2016 No, you can't claim. You must be the owner/co-owner to the property.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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10 April 2016 In the case of Tinsukia Developement Corporation V CIT(1979)120 ITR 466(Cal) it has been held that the person who owns the building need not also be the owner of the land upon which it stands.
So, in this case if you take permission letter suitably drafted in the manner authorising you to construct the building, you will be allowed the benefits of Section 80C and Section 24 both.

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Bon Saha

Bon Saha (Querist)
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11 April 2016 Thank you Sir, my doubt is now cleared.