House property [case of section 24b]

This query is : Resolved

Vivek Kumar Verma (Querist)
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23 October 2012 Mr. A (Applicant) is of 58 yrs and solely owner of property for which he applied for Home loan for further Construction and the same property was kept as a security under Bank, the application was rejected because of age limit.
The application was re-put along with his son Mr. B being (Co-applicant) the application was accepted and the loan was sanctioned.
Questions Are
1] Whether Mr. B can avail the benefits of section 24(b) House Property?
2] If Mr. B repays the 100% loan. Can he Claim 100% House loan Interest u/s 24(b)?
3] If Mr. B repays the 50% loan. Can he Claim 50% House loan Interest u/s 24(b)?

@VaibhavJ

@VaibhavJ (Expert)
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23 October 2012 Hi

Int payment can be claimed in proportion of amount paid, you can enter in to an agreement to avoid disputes.

Rgds//Vaibhav
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Vivek Kumar Verma

Vivek Kumar Verma (Querist)
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24 October 2012 What happens in future "if the property is rented."

And suppose i bifurcate the rent also but section 64 Clubbing of income does not allow me.

"Asset transferred without consideration"

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Soumitra Basu

Soumitra Basu (Expert)
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24 October 2012 IT IS A DEBATABLE ISSUE WHETHER MR B WILL GET BENEFIT OF 50% OR 100%. THE SON HAS NO LEGAL RIGHT ON THE PROPERTY AND AS SUCH THE QUESTION OF BIFURCATION DOES NOT ARISE AT ALL.THE QUESTION OF CLUBBING OF INCOME DOES NOT ARISE AT ALL.

Anand Modi

Anand Modi (Expert)
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24 October 2012 Prepare an agreement which clearly states that the share of son is only 2 or 5%.

now if the father receives the whole rent then only 5% will be taxed to son.

If the Son gifts the sum to father then there is no Clubbing.