1. The property has been taken in the name of wife and the construction
loan has been taken in the joint name of husband and wife
2. In the return of the husband (assesee) the benefit for the deduction
of the principal amt and the interest has been taken and claimed the
refund of tax
3. now the demand has been raised for wrong claiming of rebate
Is there any elgible way of saving such person
Only persons in whose name property is registered would be able to claim rebate u/s 80-C and Loss from House Property u/s 24. Mere obtaining loan in joint names does not confer ownership rights on the husband.
For the Previous Year already passed, the Husband has no ground to dispute the Department's view and notice
Perhaps for future years, the couple may consider registering the property in joint names (by way of gifting 50 %). This involves registration expenses etc. They have to study the merits and demerits of property transfer. This can however be for future assessment years purpose only
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