Deduction u/s 80C & 24

This query is : Resolved

CA. Amey Badle (Querist)
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08 February 2009 An assessee has signed as a guarantor for home loan to a person known to him. After payment of certain installments, the borrower becomes insolvent. The bank has asked the guarantor to pay the remaining installments on behalf of the borrower as he was the guarantor. Now the questio is cas the guarantor claim deduction u/s 80C & 24 for the installments paid on behalf of the borrower for a house which is not actually owned by him?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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08 February 2009 No he cannnot claim. The benefit is for the assessee who has taken the loan and not for the guarantor.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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09 February 2009 No guarantor can claim the deductions as he is not the owner of property. Moreover, the housing loan is taken by the Owners of the property and the amount is being repaid on behalf of the borrowers which in any case is recoverable from them.

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