Girish K (Senior Accounts Executive) (218 Points)
21 January 2011Hi ,
I am repaying my Dad's housing loan which is in his name(both property & loan) I wanted to know can I avail Income Tax benefit since I am contributing to that loan. Also please let me know whether the repayment made through cash is eligible for the deduction.
Thanks,
Girish
Pankaj Arora
(Learner)
(3134 Points)
Replied 21 January 2011
You can not take benefit of it in income tax so no matter whether paid cash or by cheque.
CA Hardik Vyas
(Practicing Chartered Accountant)
(130 Points)
Replied 21 January 2011
Dear,
Payment mode is irrelevant here. It is applicable in 80D only.
The reason is, Housing Loan is Provided by Bank only, n you need to pay it through Bank only. So mode is not relevant for the purpose.
As both are in the name of your father, only he can avail tax benifit u/s. 80C to the extent Principle amount of the Laon.
Girish K
(Senior Accounts Executive)
(218 Points)
Replied 21 January 2011
Thanks for the reply.
Though the loan taken in my father name I am the guarantor for that loan. So any chance to get the benefit...?
Girish
CAclubindia
