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Deduction u/s -24 and 80 c

Ritesh khurana (CA student) (175 Points)

19 February 2013

Hello Experts

if an assessee took home loan in his name and all EMI of loan is paid by him but registry of house is under name of his dependent mother. Can assessee claim deductions of interest under sec -24 and principle u/s 80

please guide

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5 Replies

Ritesh Surana (Article Assistant) (49 Points)
Replied 20 February 2013

Dear Ritesh,

The above assessee cannot claim deduction u/s 24 (a), (b) as well as 80C since the property is not in the name of the assessee.

As section 24 (a), (b) and 80C clearly mentions that the residential property should be in the name of assessee himself.

Hence the assessee cannot claim deduction even though it is in the name of his dependant mother.

Thank You.

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(Guest)

I agree with Ritesh...

Ritesh khurana (CA student) (175 Points)
Replied 21 February 2013

Thanks for your reply Ritesh

But Assessee can not take the advantage of beneficial ownership?

With Regards

Ritesh khurana

Shobhit Gupta (ACA, B. Com (H)) (130 Points)
Replied 21 February 2013

Well.. In my opinion. assessee shall claim the deduction. Recently I have been through this same case & after consulting senior CAs and provisions of bare act, I formed a conclusion that IT Dept has nothing to do with the Registry, they are concerned with whose money is involved & accordingly assessee will get the benefit. Here assessee becomes the beneficial owner.