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Housing loan repayment deduction under sections 24b and 80c

Anurag Suresh kulkarni (Tax & Audit Associate) (137 Points)

28 June 2016

There is an assessee who is having housing loan. Assessee gets retired during previous year and currently his son making repayments/ paying EMI of the housing loan. House is in the name of assessee only. Can his son claim deduction under section 24b and 80C for repayment of housing loan ? Is there any way out to claim such deduction?

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4 Replies

CA Janani (ACA ACS DISA(ICAI)) (359 Points)
Replied 28 June 2016

tHE INTEREST AND THE PRINCIPAL PART CAN BE CLAIMED AS DEDUCTION ONLY IF THE LOAN IS REPAID BY THE ASSESSEE AND THE PROPERTY IS OWNED BY THE ASSESSEE

HERE ALTHOUGH THE ASSESSEE'S SON IS REPAYING THE LOAN, THE PROPERTY DOES NOT BELONG TO HIM..

ONE OPTION IS THAT, THE FATHER CAN SETTLE THE PROPERTY IN FAVOUR OF SON THRU SETTLEMENT DEED(UNREGISTERED IS ALSO ENOUGH) AND THEN THE SON CAN CLAIM DEDUCTIONS

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CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 28 June 2016

Sir only assessee can claim such deductions if paid by him and ownership lies with him too. If son wants to claim these deductions father should transfer the property to son by way of settlement deed

praveen choudhary (ca) (31 Points)
Replied 28 June 2016

One another situation may arise that one land purchase by wife and house construction is made by husband. Husband take loan in joint name (I.e. in the name of wife & husband). Husband repay the loan installment than can only Husband can claims deduction under sec. 24 b and 80C