Deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2013 An assesse purchased the property on his mother's name by loan but the loan borrowed by him. Assesse can't get the deduction u/s 80C. 1).How he can get deduction? 2).If the property transfers by gift by mother to assesse then he can get deduction or not?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 December 2013 you can claim deduction. you need to show yourself as beneficial owner of the property.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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13 December 2013 If we go through Section 80C(2)(xviii) , it can not be found that the property should be owned by the assesee.
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1. This requires that the loan must be borrowed for the purpose of purchase or construction of house.
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2. The income from the house is assessable under the head IFHP. It may be SOP or let out.

The section does not requires that the income nust be charged in the hands of the assessee.
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3. Repayment must be made by the assessee
against the amount borrowed by himself.
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All these conditions are satisfied.
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So, in the present scenerio, you can claim deduction U/s 80C, at least, in the case of the borrower.
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Please have more opinions on this issue.
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Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 December 2013 Pravesh,

Bafna ji has covered it comprehensively. So need not worry about gifting etc..