Dear All,
Bank issued the Housing Loan certificate in the name of wife and husband but the owner of the property is wife. Can husband claim the Housing loan exemption on the basis of certificate issued by the bank?
Thanks
Parmod
Parmod Agarwal (Assistant Manager) (394 Points)
16 February 2010Dear All,
Bank issued the Housing Loan certificate in the name of wife and husband but the owner of the property is wife. Can husband claim the Housing loan exemption on the basis of certificate issued by the bank?
Thanks
Parmod
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 16 February 2010
You need to be an owner of the house to claim deduction u/s 24. If you are joint owners then you can claim otherwise not.
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 16 February 2010
You need to be an owner of the house to claim deduction u/s 24. If you are joint owners then you can claim otherwise not.
tapesh Kumar
(ARTICLE)
(46 Points)
Replied 16 February 2010
Mr. Aditya is right. The property must be in name of the assessee for claiming deduction
CA Ankit Totla
(Practicing Chartered Accountant)
(469 Points)
Replied 16 February 2010
agree with aditya..!
SRINIVAS SRIRAJ
(Chartered Accountant)
(130 Points)
Replied 16 February 2010
The Husband can have a House property or any other property in the name of his wife as per the Benami Act (Sec.3).
Ref: IT Act, 1961-The following Section
"27. For the purposes of sections 22 to 26—
(i) an individual who transfers otherwise than for adequate consideration any house property to his or her spouse, not being a transfer in connection with an agreement to live apart, or to a minor child not being a married daughter, shall be deemed to be the owner of the house property so transferred;"
In the light of the above, the husband can be assessed the Income from HP arising out of the property owned by the wife, provided the husband has acquired the property from out of his sources + the loan. The case will be more stronger if the wife is not having any source of income.
Jatin Singh Negi
(Country Analyst )
(505 Points)
Replied 17 February 2010
Divya.M
(CA Final Student)
(274 Points)
Replied 17 February 2010
If the husband transfers house property to wife for inadequate consideration, Husband will de DEEMED OWNER of the property & he can claim the Interest on loan
Nithin Chettoor
(Assistant Manager)
(388 Points)
Replied 17 February 2010
Hey Pramod,
I seriously doubt whether a bank would be ready to issue a certificate for both when they are not the joint owner of the property for which they are getting the loan.
Anyway, as they have got the ceritificate, now we can think of the treatment of ur qstn. It is clear from the section that income from House property will be assessed as income in the hands of the owner or the deemed owner of the HP and none else. As in the fact of the instance,it is clear that wife is the owner of the property and there is no question of husband getting involved in availing the deduction. The husband is not at all an assesse under this head, provided he is not an owner of any other property.
Srinivas sir, i think wat u have opined is applicable only when a clubbing provision is applied and i dont think there is any instance here where the said act will be applicable according to my knowledge.
Nithin
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