manisha (PROPRIETORIX) (50 Points)
26 March 2012one of clients has given power of attorney to III party for sale of his housing property on which he has a housing loan, the property is not yet transferred but the ttorney holder is paying intallments to the owner and the owner is paying the installments to bank.
will he be able to claim rebate u/s 80-c for repayment of loan?
Anumanchipalli Sathikonda
(Tax Consultant)
(1559 Points)
Replied 26 March 2012
Ms.Manisha
You have mentioned a power of attorney has been given to a third party and the third party is paying installments to the owner of the house and in turn the owner the repaying the housing loan to the bank.
The above information is not sufficient to determine whether the ownership is transfered to the power of attorney holder as you have not clairfied the nature of the power of attorney i.e. irrevocable power of attorney or general power of attorney or specific power of attorney and the terms therein.
You have also not provided the information regarding the possesion of the house property. Now in whose possions is the house property. Is the possesion given to the power of attorney holder? or still it is in the possession of the original owner?
If the required informations is provided it can be determined as per the provisions of section 27 of the Income-tax Act, 1961, who is real owner of the impugned house property.
When it is known who is the house owner it can be decided whether deduction u/s 80C admissible or not.
I request you, to be precise when framing a question for the opinion of other professionals. You will also face the same difficulty if some body puts a question to you wihout sufficient relevant information.
Best Wishes
Sathikonda
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