CA Mrinal Gunjan (CA) (131 Points)
31 March 2010If the house property is registered in the name of the wife of the assessee and the loan for the house property is being paid by the assessee himself is the interest exemption u/s 24 available to the assessee? also whether principal repayment deduction u/s 80C available to the payer of the loan(i.e. the assessee himself).
C.Balaji
(Learner)
(1867 Points)
Replied 31 March 2010
Dear Mrinal Gunjan.........
According to me....to claim the interest and principal repayment the house should be fully owned / jointly owned by the assessee.....otherwise no deduction is allowed to the assessee........
Amir
(Learner)
(4016 Points)
Replied 01 April 2010
Dear Friends,
In the present case the clubbing provisions will be attracted...and deduction will be allowed.
Interest on borrowals invested in properties owned by wife/minor children is deductible - Where the assessee had borrowed money at interest to purchase certain house property in the names of his wife and minor children and the income from that property was included in the assessee’s total income under the provisions of section 64(1)(iv) and (v), it was held that the assessee’s claim for deduction of interest on borrowed money under section 24, read with section 27(1), could not be rejected on the ground that the borrowing had been effected, not in the name of the assessee’s wife or minor children, but in his own name - S.M.A. Siddique v. CIT
Raj Saxena (1412th Tiger)
(Struggling Student)
(272 Points)
Replied 01 April 2010
What if the property is the self occupied one and there is no clubbing of income.
Still the assessee can claim d deduction?
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