26 December 2014
ONE PERSON(HUSBAND) HAS REPAID THE HOUSING LOAN WHICH HAS TAKEN IN HIS NAME, BUT THE PROPERTY ,FOR WHICH THE LOAN HAS BEEN TAKEN, HAS BEEN REGISTERED IN THE NAME OF HIS WIFE?
IS DEDUCTION U/S. 80C & 24 HAS BEEN ALLOWED TO THE PERSON(HUSBAND) OR NOT?
& WHAT IF HIS WIFE HAS SUFFICIENT INCOME OR DOESN'T HAVE?
26 December 2014
Deduction under section 24(b) will be allowed. The Transaction between Husband and wife Inter loan transaction or it can be treated as gift from relative withing definition of relative under section 56(2)(vii). Both above Treatment have no Income Tax Consequence at all.
Further, meaning of loan doesn't only means taking from someone and then paid to third party but also include paid directly to the third person withing provision of Indian Contract Act 1872
Therefore, Deduction under section 24(b)will allowed to wife on payment made by his husband.
CAclubindia
