Father & son took the Joint housing loan last year for the construction of the SOP(still construction is going on,After 2 years it will be complete).The EMI's for the loan repayment went out of the Joint Bank a/c(SBIndia).(Father actually have the income which is less than the minimum exemption limit i.e, Rs.150000)Now father is giving TO WHOM SO EVER IT MAY CONCERN LETTER to son,to get all the sum(principal+interest) repaid to son to avail the deduction U/s-80C and U/S-24(b).Is father is correct?
1).If not what is the treatment? 2).In this case,is it possible to give the total deduction to son,How?
12 July 2009
1)This is not valid treatment; it's a clear case of camoflaging. The deduction of payments will be given as per the certificate issued from the entity from which loan is taken and bifurcated in the ownership ratio.
13 July 2009
The SBI given the certificate of the Loan Repayment to the assessee, In that certificate they have mentioned both the names i.e,Father & son Name,
But ownership ratio is not mentioned. However the House for which construction is going on is Registered in the Both names. Please tell me what is the treatment for this
A.Principal Repaid=20,200 B.Intrest repaid=118800 Father doesnt have the Income Which exceeds the Basic Exemption Limit.Please give the Solution for this?
CAclubindia
