• Income tax rebate on home loan interest

I want to buy a house in my wife's name. She is a house wife. Can I get tax benefit on the interest and principal amounts. Is there any specific clause for this. 
Asked 6 months ago in Income Tax from Mumbai, Maharashtra
Dear Sir,

To avoid the litigation in future, become co-owner and get the benefit of interest and principal deduction.

Thanks
Vivek Kumar Arora
CA, Delhi
1257 Answers
24 Consultations

5.0 on 5.0

You will not be able to claim the benefit if the property is only in her name.
Better idea is to become the co-owner and then the benefit can be claimed by either or both of you.

Hope that clarifies.
Nikhil Khanna
CA, Mumbai
1036 Answers
7 Consultations

5.0 on 5.0

HI,

Tax Law: The deduction for interest and principal amount is available to the owner of the house. By owner, the income tax covers the individual who bears the cost of the house.

In your case, you can buy the house in wife's name. But you will get the deductions only if you are bearing the cost. The following things need to considered:

1. You should be able to prove that you have paid the down payment.
2. Your bank account must show entries that you are bearing the whole principle and interest amount in respect of the home loan taken.
3. If the payments will be made from her account, then for such amounts, she can claim the deductions in her tax return.

Thanks & Regards,
Damini
Damini Agarwal
CA, Bengaluru
261 Answers
12 Consultations

5.0 on 5.0

In order to claim all tax benefits, you need to be a co-owner in the property, a co-applicant in the loan and pay the installments from your account. 

Registering a property only in your wife's name would not entitle you to the tax benefits.
Lakshita Bhandari
CA, Mumbai
1849 Answers
55 Consultations

5.0 on 5.0

If you buy house in your spouse name then she can claim the benefit of interest and principal, how ever if the house is in joint name then both of you can claim interest benefit and principal benefit from your income. It is better to advice that whose having more income  slab should own the house so that he or she can claim interest and principal benefit.
Also if this is 2nd house then she can claim full benefit provided she has to file income tax refund and that house should be self occupied by her.
Amrut Deshmukh
CA, Nagpur
27 Answers

5.0 on 5.0

Hi,

Only owner of Property can claim Deductions for Principal and Interest on Housing Loan. So, if you want to claim IT benefit, buy the house either only in your name or jointly with your wife
Pradeep Bhat
CA, Bengaluru
474 Answers
28 Consultations

5.0 on 5.0

For getting the benefit of deduction u/s 24(b) and 80C of Income Tax act, the loan must be in your name . but you can take a joint loan also with your spouse in that case you can get the part benefit of the above section. so it advisable to take the loan on your name. and enjoy the following benefits
1. Deduction upto Rs. 200000 us 24(b) - For self occupied property.and 
2. Deduction upto Rs. 150000 us 80C 

You can also claim deduction u/s 80C for Stamp duty and Registration Fees paid.

Regards,
CA Rakesh
Rakesh Kumar Thakur
CA, Kolkata
6 Answers

Not rated

No, You can take the house in joint name. In that case you can get the tax benefit for the aomunt paid towards interest and loan 
Vidya Jain
CA, Kolkata
607 Answers
13 Consultations

4.8 on 5.0

Hi,

While applying for loan, you have to declare yourself as co-borrower. In this case you will be allowed all the income ta benefits, irrespective of the fact that house is registered in your wife's name. Please take care that your wife does not have any separate taxable income.

Regards,
Sunny Thakral
CA, Delhi
224 Answers
5 Consultations

5.0 on 5.0

No, you can get benefit of interest and principal amount until or unless you are at least a co owner of the house.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards
Abhishek Dugar
CA CS B.Com
Abhishek Dugar
CA, Mumbai
3296 Answers
149 Consultations

5.0 on 5.0

Hi,

It is advisable to ensure that the house is in the name of the person who will be taking the loan and wants to claim the tax benefit. It would be  better if you buy the house jointly with your wife and then you can claim the full benefit of the interest and principal. 

Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
23 Consultations

5.0 on 5.0

Hello,

Since the house is bought by her and the loan shall also be in her name, then only she can claim the tax benefit. In case you want to claim the interest deduction then buy the property in Joint Name.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

yes if you are bearing the cost of house like down payment and emi payment ,you can take the benefit but make sure you have sufficient documents to prove the payments when inquired.

it is advisable to be co-owner and enjoy tax benefit of Interest and principle repayment.
Swati Agrawal
CA, Indore
549 Answers

5.0 on 5.0

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