Home Loan deduction U/s 24b and 80C

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sanjay_kumar (Querist)
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19 January 2010 Hi,

Last year my mother bought a house in Faridabad. My mother and me are the joint borrower for the home loan. I am not the owner or co-owner of the property. I have only salary income. However, I am the borrower in home loan and all the EMIs are paid by me. The bank issued a certificate in my name and my mother.

Can I claim deduction for the home loan interest & principal @ 50% or Nil.

I discussed this issue with some CAs who are in practice but not able to find a consensus.

Could some one help me with the reference/ circular to resolve this issue.

Thanks in advance.

Regards,

Piyush

Barun Kumar Ghosh

Barun Kumar Ghosh (Expert)
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20 January 2010 Your mother is owner of the house property. The assessee is entitled to claim principal amount repaid under section 80C if the income from the property is assessable under the head "income from house property".As you are not the owner of the property, income or notional income(in case of self-occupied property) is not assessable in your hand. Hence you canot claim deduction under section 80C.
For the same reason you are not entitled to deduction under section 24 in respect of interest on borrowing.