Housing loan - help me on act 24(b)

This query is : Resolved

Vinoth (Querist)
Follow

29 December 2011 Hi
I have taken a home loan from a bank 3 years back. Actually the property is on my father name since the loan was granted to my father name only. I was just guarantor. Though I repay the whole loan amount, being a guarantor (not a owner or co-owner) I was not able to avail the tax benefits.
Now I’m looking to convert the loan into joint account (i.e) my dad and myself to avail the tax benefits. When I google, I just found that only owner or co owners of the property can avail the tax benefits. Here in my case after I convert the loan into joint account also I will not be a co owner.
Also I see this owner or co owner stuff only in 80 c act. As for as my understanding this part is not mentioned in 24(b) act. So am I eligible to avail the tax benefits on my home loan interest at least after converting the loan into joint account.
Please help me on this

Rahul Gupta

Rahul Gupta (Expert)
Follow

29 December 2011 In my opinion deduction will not be available because Section 24b is applicable only if where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital.

Vinoth

Vinoth (Querist)
Follow

29 December 2011 Yes we have took the housing loan for reconstruction only.

Upgrade to CAclubindia Pro. Subscribe Now!

chetan soni

chetan soni (Expert)
Follow

29 December 2011 it is allowed only to the owner of property & not the one who repay the loan.

Only adding your self in the loan does not comply the condition of owner.

So at last you are not eligible to claim the interest u/s 24(b).

Vinoth

Vinoth (Querist)
Follow

29 December 2011 Oh, that's my bad. Is their any other way to crack the excemptions in my case?

chetan soni

chetan soni (Expert)
Follow

29 December 2011 get your name is also added in the property doc. Ask advocate for the process & then start claiming the deduction.

Rahul Gupta

Rahul Gupta (Expert)
Follow

29 December 2011 I don't think that only adding of the name will be sufficient for claiming deduction. In that case you are claiming deduction of interest on loan which you have taken for the purpose of repayment of housing loan of previous owner not for your own purpose.