CA Shyamal Mistry (M.Com, A.C.A.) (128 Points)
18 October 2012Dear friends,
In case of deduction U/S. 80C for principle amount of Housing Loan paid, can 2 assessees claim the deduction, for eg:- say the owner pays 1 lakh principle amount and claims it U/S. 80C deduction & his relative , say his son, pays another 1 lakh for the same loan, can both claim deduction U/S. 80C ( 1 lakh each ).
Regards,
Shyamal
CA Manish
(Job)
(5264 Points)
Replied 18 October 2012
Yes, It can be claimed by both the co owner provided both have paid.
CA Shyamal Mistry
(M.Com, A.C.A.)
(128 Points)
Replied 18 October 2012
So, the loan should be in joint names...........or the property in joint names.....???
The property should be a joint holding for sure and regarding the other, you have to consider the rationality.
I think one should pay his ones liability and not some or other relative.
Will you agree that ones son has paid ones loan. What is his consideration when the liability is not on him. If so it has to be considered as gift, nothing otherthan it. Taxation has nothing to do with relations except with ownerships.
But as law is silent about you can claim but with an ascertained risk of calling off by assessing officer for income escaping.
Kamlesh
(Article Assistant)
(137 Points)
Replied 18 October 2012
Property and Loan both should be in joint name.
In balance sheet also,propery(1/2) shall be shown in both the assessee.
Both can claim deduction of Rs.100000 if both are paying that much amount.
Another Issue:
Say, Loan and Property both are shown in father-son b.s., payment from bank is done only by father.Then, in that case,if the son is transfeering that much amount to fathers account, then only deduction will be available to son.
CAclubindia
