co owners of a property

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vandana (Querist)
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22 July 2008 a property is owned by tw people , however the housing loan is in the name one person only. There is an understanding b/w the parties and half the loan is shown in the 2nd parties books in the name of the first party.
Is this correct, the 2nd party is claiming an exemption u/s 24 as half the interest is being paid by this party to the 1st party in cash.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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22 July 2008 No, the housing loan should be availed by the party claiming such exemption. It is like an unsecured loan given by one party to another which is not qualified for the purpose of exemption. Also, the interest certificate will be in the name of 1st party only.