18 July 2014
hey, my assessee have house property on her mother's name. he have taken the loan from bank on his and her mother's name. and he is paying the loan from his bank. should i claim this interest and repayment of principal in his return???
18 July 2014
AS PER SEC 22 READ WITH SEC 24, INTT ON BORROWED CAPITAL IS ALLOWED TO THE OWNER OF PROPERTY. BANKS GENERALLY TAKES EARNING MEMBER AS CO APPLICANT GRANTING THE LOAN , BUT IT DOES NOT MAKE THEM CO-OWNER IN THE PROPERTY. ONLY THE OWNER OF PROPERTY CAN CLAIM DEDUCTION U/S 24. IN YOUR CASE, YOU CAN MAKE A GIFT DEED FROM MOTHER TO SON IN THE SHARE OF PROPERTY AND THEN CAN CLAIM THE INTT ON BORROWED CAPITAL. MAKE SURE THAT GIFT DEED SHOULD BE IRREVOCABLE WITH SHARE IN PROPERTY DETERMINED LIKE 50 %. THIS IS MY VIEW, BUT U CAN WAIT FOR SOME OTHER EXPERT
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