27 August 2018
Sir/Madam, The son Mr A, who lives in london, regularly transfers amount of around 60000rs every month in his mother's bank account. Amount is transfered to pay housing loan emi. Housing loan is in their joint name. But emi is deducted from mother's account. And the property for which it is taken is lent out on rent. How would the amount received from son every month be treated under income tax act? What precautions to be taken while filing mothers tax return, considering she receives rent of that property being let out property? Please guide.
28 August 2018
Sir, house is not jointly owned. mother is the single owner.
Only housing loan is in joint name.
Will she not qualify to claim deduction of interest and repayment of principal since its paid from her bank account.
Thanks.
28 August 2018
In my opinion, no tax benefits will be given since she doesnt pay from her contribution. There is a round about way, however. If the son sends her money for maintenance and she makes the home loan repayment out of it, benefits can be availed.
CAclubindia
