If a husband buy a flat in the name of wife and makes her the only owner but takes loan in name of him and keep his wife as co applicant in loan. Loan was sanctioned based on husband's income as wife is not earning.
Is Husband is eligible for deduction in income tax on his income for housing loan for all the sections were ever deduction is available.
note husband is not the owner of property but main applicant in housing loan.
Due to clubbing of income under income tax act, he will be deemed owner of the house, and as such all the income with deductions, if any; will be declared in the ITR of husband only.
As such he can claim the interest deduction if he pays EMI himself..
Only problem is ITO may not accept it.
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