Interest deduction u/s 24... URGENT
This query is : Resolved
18 September 2009
1. If the property is in the name of the parents and the loan has been taken by their son, then is the deduction of Interest on the loan available for the son under the head house property.
2. If the Intt. deduction is not available to the son then can the parents claim it. But, they have not taken the loan, their son has.
Please answer this query ASAP.
2. If the Intt. deduction is not available to the son then can the parents claim it. But, they have not taken the loan, their son has.
Please answer this query ASAP.
18 September 2009
The parents can claim the deduction stating that the son has raised the loan and given to parents and parents are inturn repaying that loan and interst. Proper documentation has be made, then you can claim the interest in the file of parents.
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20 September 2009
Thanks for the reply, but in the bank statements of 2008-09, no loan has been taken by the parents. Can i show this loan in cash, or that the loan was taken on behalf of the parents?
21 September 2009
You have to clarify the purpose of loan.
As you want to deduct the loan from property income, it might have been taken
for the purpose of construction or purchase of property.
If you can show that the parents have allowed the son to construct the property and he is owner of the super structure, then deduction can be claimed for interest by the son.
If son has contributed in purchasing the property in the names of his parents, he may show interest paid to bankers as amount receivable from parents alongwith the amt of loan actually raised. Parents in such a situation would repay the amt to son by cheque. Bank loan as per statement is the liability of son and amt receivable from parents will be his asset.Question of providing loan in cash will not arise.
Proper documents in both the cases are
required to be created.
As you want to deduct the loan from property income, it might have been taken
for the purpose of construction or purchase of property.
If you can show that the parents have allowed the son to construct the property and he is owner of the super structure, then deduction can be claimed for interest by the son.
If son has contributed in purchasing the property in the names of his parents, he may show interest paid to bankers as amount receivable from parents alongwith the amt of loan actually raised. Parents in such a situation would repay the amt to son by cheque. Bank loan as per statement is the liability of son and amt receivable from parents will be his asset.Question of providing loan in cash will not arise.
Proper documents in both the cases are
required to be created.
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