How to apply for TAX Rebate on my bought house at Hyderabad

Dear Sir,

If the house is funded by you, for taxation purpose it will be treated your house and you can claim the rebate on this house

Since it is a self occupied house, interest deduction will be restricted to INR 2 lacs p.a.

Further, you can claim repayment of principle amount of loan as deduction under section 80C maximum UpTo 1.5 lacs.

Please feel free to call/ revert in case of any doubts

Thanks and Regards
Abhishek Dugar
CA CS B.Com
Caabhishekdugar@gmail.com

Dear Rajasekhar,

You have to take care of this filing filing your Income tax return. Please do tell your CA about this at the time of filing of income tax return. He will take care of this.

Please feel free to call/ revert in case of any doubts

Thanks and Regards
Abhishek Dugar
CA CS B.Com
Caabhishekdugar@gmail.com

To claim deduction, you should be owner of property. regards

Sir in your case if your office team is not taking the claim then you can take the claim at the time of filing IT Returns.

Hello Sir,

On the basis of information provided by you it appears that you have purchased a House Property in your wife's name and the housing loan in your name. 

Are you even a Joint Owner in the property or not or is it solely in your wife's name.

If not, then why did you even enter into such a weird transaction, without consulting an expert.

Please provide the above details before we can consult you on the same.

Trust this clarifies your query. 

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

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.

Hi,
Are you also a joint owner of the property.
When a property is transferred to a person for a consideration paid or provided by another person, then such a transaction is known as benami transaction and the person in whose name the property is recorded, becomes the real owner and the person who actually paid the consideration is prohibited from bringing any kind of action to recover such property.

Moreover, he is also punished under the Benami Transactions (Prohibition) Act, 1988 (“Act”). However, under section 3(2) of the Act, an exception has been carved out for any transaction where the property is purchased by any person in the name of his wife or unmarried daughter and if property is not for their benefit.

Therefore, if the husband is able to prove that the property he purchased in his wife’s name is for his sole benefit, then he can claim the benami property completely as his own and can dispose of the whole of it as per his wish.

 the following judgements in this regard: Nand Kishore Mehra v. Sushila Mehra (AIR 1995 SC 2145) and Nand Kishore Mehra v. Smt. Sushila Mehra (80 (1999) DLT 670).

In such a situation, everything depends on facts and circumstances and no absolute formula or acid test can be used to determine the real ownership.

The husband will need to prove: (1) Source of purchase money;

(2) Nature and possession of the property, after the purchase;

(3) Motive, if any, for giving the transaction a benami colour;

(4) Position of parties and relationship, if any, between claimant and alleged benamidar;

(5) Custody of title deeds after the sale, and,

(6) Conduct of parties concerned in dealing with the property after the sale, including whether the husband accounted for the property in his own tax returns and not that of his wife.

Thus, if you are able to prove these facts, it could be said that the real ownership lies with you and you have the right to bequeath the entire property in your Will, and yes, you can write in your Will that your immovable property is being bequeathed as per your wishes and that your wife was a joint holder only for the purposes of convenience.

Situation: The property has been acquired in the name of wife only, but source of fund is husband.

Though the property may have been purchased in wife’s name may not mean that the property belongs to her. If the said house property has been purchased out of husband’s own funds (but property in wife’s name) then husband becomes the actual owner of the property. To claim income tax deduction, husband needs to make a declaration with the Assessing Officer (AO) under Benami Transaction Act 1998, stating that he is the real owner of the property though registered in his wife’s name. Once it is done, he will entitled to all deductions available to an owner of the Property relating to repayment and interest on housing loan under the Act.. 

So you can give documents to your Finance department and can claim deduction for loan (interest and principal) amount.
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