interest paid to nbfc

Prasanna (practice) (177 Points)

29 October 2009  

We have purchased two flats. ONe is in my name and the other one is registered in the name of my dad & wife as a joint owner. For the purchase of two flats i have taken a housing loan from NBFC ( Reliance Capital).i .e. Loan is sanctioned in my name. my queries are as follows:-

1. is it necessary to deduct t.d.s. on interest paid on the housing loan to nbfc?

2. Out of the sanctioned amount  i transferred thr portion of principal amount to my dads n wifes a/c as a loan in proportion of the area of another flat. loan instalment is shared by all 3 of us i.e. dan n wife transfer the share of their instalment to my bank account and then i pay the instalment. My query is dat whether my dad n wife are entitled to claim the advantage of interest paid under the head house property? and if they are entitled, then r they responsible to deduct t.d.s. on interest paid to me. i wil show as interest income recd from dad n wife .