House property - deduction u/s 24 & 80C deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2010 Individual has obtained land as a gift from father. Later the individual intends to construct a house on the same gifted land. The loan intends to be borrowed and repaid by individual and his spouse as co-borrowers. But the land is registered in the name of the individual only. My question is-
1) Is the land gifted by father exempt in the hands of the individual?
2) Can the spouse of individual claim interest deduction u/ 24 and principal repayment u/s 80C though not the owner/co-owner?
3) If the above answer is yes, can both the individual & spouse claim interest deduction of Rs.1.5 lakhs individually?
4) If interest deduction cannot be claimed by the spouse, then alternative available for the spouse to claim interest deduction u/s 24 and deduction u/s 80C ?

CA PRIKSHIT GUPTA

CA PRIKSHIT GUPTA (Expert)
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13 February 2010 According to me,
1. Land gifted by father is not taxable in the hand of the son.
2. ownership is compulsary to calim deduction u/s 24 and 80C. so, spouse can't calim any deduction.
3. N.A.
4. There is no way to calim deduction by the spouse