Interest on housing loan

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2013 We have a house which is in my Fathers name. Now we want to demolish the house and reconstruct a new one for this i want to approach a bank for a loan. My query here is the interest i pay on my housing loan is deductible for me U/s 24 or not . and if yes how much i.e., 30000 or 1500000 which limit is applicable for me. and the principle is deudctible for me u/s 80C or not. and I have a younger brother too who is a student. Whether before approaching bank shall i register the house in my name or can it be in my fathers name and i can approach the bank for a loan . kindly suggest me in this regard. I shall be thankful for the same .

shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)
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19 February 2013 The assessee can claim interest on housing loan upvto Maximum of Rs.1.50lakhs in case of self occupied property and the actual interest in case of let out property.But such claim of interest is given when the income from such house is taxable under the head Income from house property.In your case the ownership is in your father;s name. Hence you are not eligible, though you may stand as a co-obligant for the housing loan.

Querist : Anonymous

Querist : Anonymous (Querist)

27 February 2013 what about if the house is got registered in my name. presently i am availing the HRA Benefits. can this be a problem for me in the future . please sugggest.

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