Interest on housing loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2012 Housing Loan and House property is in name of father. Can son get income tax deduction for the interest on housing loan U/s 80C if son makes payment for the Housing Loan Installment.

Mihir Doshi

Mihir Doshi (Expert)
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04 May 2012 No such deduction will be allowed to Son.

Only the registered House owner can take the benefit of such loan deduction on his own name.

Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2012 If Sons makes payment on behalf of father then also he is not allowed to take deduction as per income tax???????

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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01 August 2024 Under Indian income tax laws, the eligibility to claim deductions on housing loans is linked to property ownership, not just the payment of loan installments. Here’s a detailed explanation regarding the claim of deductions for interest and principal repayment:

### **1. Interest on Housing Loan (Section 24(b))**

- **Eligibility for Deduction:**
- The deduction for interest on a housing loan under Section 24(b) is available to the person who is the owner of the property and who is also liable to repay the loan.
- Since the housing loan and property are in your father’s name, your father is the rightful owner and the person liable for the loan. Therefore, only your father can claim the deduction for interest on the loan.

- **Implication for Son Making Payments:**
- Even if the son (you) makes the payments on behalf of the father, you cannot claim the interest deduction under Section 24(b) as you are not the owner of the property. The deduction can only be claimed by the owner of the property (your father).

### **2. Principal Repayment (Section 80C)**

- **Eligibility for Deduction:**
- The deduction for principal repayment on a housing loan under Section 80C is also available only to the person who is the owner of the property.
- Since the property is in your father's name, your father can claim this deduction, provided he is making the repayment.

- **Implication for Son Making Payments:**
- Similar to interest deductions, you cannot claim the deduction for principal repayment under Section 80C if the property is in your father’s name and you are not the owner. The deduction is specifically for the owner of the property who is repaying the loan.

### **Summary:**

- **Interest Deduction (Section 24(b)):** Only the property owner (your father) can claim the deduction for interest on the housing loan.
- **Principal Deduction (Section 80C):** Only the property owner (your father) can claim the deduction for principal repayment.

### **Recommendations:**

- **Property Ownership:** To claim tax benefits for interest and principal repayment, the property should be registered in the name of the person claiming the deduction.
- **Consult a Tax Professional:** If you have complex arrangements or payments made on behalf of someone else, it is advisable to consult a tax professional for personalized guidance.

In conclusion, as the property and the loan are in your father’s name, he is the only person eligible to claim these deductions, regardless of who actually makes the payments.