Sec 80C benefit on housing loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2010 One of my clients is a co-owner alongwith his wife. His wife, being a bank employee has taken a bank loan on her sole name.

Can my client get the income tax benefit under sec 80C and 24B against the repayment of the loan paid from his wife's account?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 June 2010 If the house is owned by the 2 or more persons such is called co ownership Each owners entitled to claim Housing interest u/s.24(b) both can claim separate deduction refer Sec.26

But Sec.80C no such provisions actual payer can claim the principal u/s.80C

CA Pradeep Kumar Rajput

CA Pradeep Kumar Rajput (Expert)
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18 June 2010 for this it has to be in the Joint name....

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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18 June 2010 Conditions under sec,26 only co owners only so can be claimed interest

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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18 June 2010 Agreed with experts. if the property in joint name i.e in co-ownership, then both can claim deduciton seprately.

Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2010 Thanks for the reply...but my query is...

My client is a co-owner. But he is not the home loan borrower (his wife is). Can my client claim exemption under sec 80C for principal repayment even though he is not the co-borrower?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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18 June 2010 For claiming deduction Co-owners and Joint loans should be there, if property co- owener but Loan in one person name the actual loan in whose name he can claim deduction not for other person i will provide the some useful link to you

http://taxworry.com/can-a-person-get-deduction-of-interest-paid-on-more-than-one-loan-borrowed-for-purchase-or-construction-of-house/

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Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2010 Thanks a lot Ramesh...this was what exactly I was looking for.
So it means that a person will only get deduction under sections 80C and 24B only if he is both a co-owner and co-borrower. Absence if eith case will not make him ineligible to claim deduction under the above sections.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2010 Correcting the above sentence....will make him ineligible in the absence of the 2 criteria.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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18 June 2010 Thanks Mr. Ramesh for providing useful link for future use also.