How to claim benefit u/s 24 in case of multiple home loans

Technically speaking since your name is not there in the sale deed therefore you can't take the benefit of loan paid on first home, because to show it under income from house property of son he needs to be the owner or atleast one of the owner of the house since he is not he cannot claim benefit of section 24 in case of first house.

However if your parents gift you such property then in that case you can claim deduction under section 24 for such house.

In case if you claim such house is owned by you there is a risk of getting a notice to show the sale deed, so my advice would be to not show it and create some income of parents and let them pay it.

If you still want to show one as self occupied and one as deemed let out then obviously showing 1st home as self occupied would be more beneficial because if you show 1st house as self occupied your net loss from house property would be 1.27 lacs and if you show second as self occupied your net loss from house property would be 15000 so it's better to show house 1 as self occupied.

From the above question I am assuming the son is doing a job so he can't transfer any money to parents however if he is doing some business let the parents themselves pay the loan and claim benefit of such repayment.

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Thank you

Hi Deepak,

1. No, your son can not avail the tax benefits on property 1.

2. Property 1 should be considered as SOP and 2 should be considered as LOP.

Hi,

- Property 1 owners will be Father and Mother in their equal ration as mentioned by you even though loan is being fully serviced by son. To avail the benefit of interest deduction, name of son should be included in the registered documents.

- Property 2 should be considered as self-occupied for son and can avail the benefit of principal component u/s 80c and interest u/s 24.

- As Property 1 is in the name of parents so no question of deemed to be let out concept arises.

Thanks

Hi Deepak

1. Interest benefits under house property head

can only be claimed by the owner of the house. So, son cannot claim deduction under section 24 for property 1.

2. Property 2 shall be SOP for son. Since he is not owner of property 1, no interest benefits; no point of deemed let out.

Both will get 50% deduction i.e. In case of interest 71000 each and in case of principal they will get deduction u/s 97500 each..any which ways their income is below taxable limit.

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Thank you

Hi,

- As you all are co-borrowers therefore you and your wife can claim a per the ratio (i.e.50/50) but it will be subject to litigation as repayment of loan is solely done by your son only. You both can claim full amount u/s 80C and u/s 24.

- To avail the benefit in future, make payment to son (joint account from where EMI is paid) on monthly basis from your accounts.

Thanks

Dear Sir,

Hope you are doing well !

1.Son cannot claim deduction u/s 24 for property 1 as he is not an owner of property.

2. Property 2 shall be self occupied property for son. He is not an owner of property 1 so there is no question of deemed let out property.

Thanks & Regards,

Payal Chhajed

Hi,

1. Since the son is not the owner of the house, he cannot claim deduction under section 24 for property 1.

2. Property 2 can be Self occupied for son. Since he is not owner of property 1 so for him there is only 1 property and hence no question of deemed let out

It is advisable to not claim any benefit in the mothers name as she is not paying the EMIs.bother father and son can take the benefit

Hi

1.Only owners can claim the deduction under sec 24 since son is not owner of property ,he cannot take benefit of home loan deduction.

2.Property 2 will be self occupied for son.

Hi,

I am jumping on to your last question

1. Benefit under section 80C and 24 can be claimed only by the person who is paying the loan. Hence, only your father can claim it.

2. This question is not applicable