Interest on Housing Loan U/s 24b

This query is : Resolved

Bharanitharan (Querist)
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14 May 2010 Mr.A is constructing a new house.The New house is in the name of Mr.A, but Housing loan was in the name of Mrs.A to construct the house.

In the above case Who can claim Interest Payment U/s 24b and Principal in 80C.

CA KISHORE VANAMA

CA KISHORE VANAMA (Expert)
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14 May 2010 I think Mr A can claim both interest and principal , because the section prescribe only one thing ie. The loan should be taken for the purpose of construction only but it does not specifies any name

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CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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14 May 2010 See, If you will calculate Income From House Property(u/s 22) then it will be taxable in the hands of Mr. A, and according to computation Interest part should be calculated for Mr. A only.

But because here Mrs. A is paying interest therefore deduction on Interest is available for Mrs. A not for Mr. A.

However, if Mrs. A is not owning this house then this interest cannot be claim by her.

same is applicable for Repayment of Houseing Loan u/s 80C.

Secondly A certificate required at the time of claiming Interest deduction and the same will be issued only in the name of Mrs. A, therefore there is also a problem.

Regards!!!

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