Getting income tax rebate of interest on housing loan

Getting income tax rebate of interest on housing loan

A completely built in housing flat was transferred in name of my wife who is house wife in builder book from third party with loan from LIC Home Finance. Loan is joint and payment of EMI is being done by me. Now Flat is transferred to my wife name in builder book and ready for registration. I requested builder to add my name as joint which is agreed by builder but NOC is not being given by LIC stating that tri party agreement is signed by wife only and no change is possible until complete loan amount is paid.
I want to claim income tax rebate on the interest amount as self occupied property by me since Loan is joint but property is being registered in wife’s name. How can I make document to avoid any hassles in future. Interest amount is approx Rs 2 Lakhs. Property is yet to be registered. Can Any gift or sale agreement be made
Please advice to get income tax rebate before registration of property without hassle. It has been advised to me income tax rebate on loan interest can be claimed as section 27 of it act being deemed owner since complete financing is done by me.

Asked 7 years ago in Income Tax

Dear Sir,

Since your are coapplicant of loan on property and the emi is debited from your account only. you can give letter to LIC housing finance stating fact that the i will be joint property owner of the property sicne i am paying emi from my account only and institute will accept the said claim and allow you to have property jointly registered in both of your name.

If they do not allow than the option is to go for takeover of loan and add your name in property registration. Same can be done by LIC Housing finaance only with opening up new account number in your name and closign old account number as if you have repaid the earliesr loan and taken fresh loan in joint name for purchase of property.

Both options are valid for claiming income tax benefit.

Will be happy to serve any of your other requirement.

Thanks & Regards

CA Vishrut Shah

(+91-9824798534)

Vishrut Rajesh Shah

CA, Ahmedabad

928 Answers

39 Consultations

5.0 on 5.0

Talk to Vishrut Rajesh Shah

Dear Mr Shah
In case i continue with the present way. Property to be registered in name of wife (Housewife) and loan is in joint name ( Me and My wife)  . I am only serving member  in the family. Can I take tax rebate on housing loan interest upto Rs 2,00,000 under section 24 as Self Occupied property for myself being deemed owner. There will be no issues that property is not in my name (Wife's name) whereas loan is in name of me and wife.

Asked 7 years ago

Dear Sir,

Yes you can claim income tax benefit if the loan is in your name. The only thing is when you will sell the property in future the capital gain arising out of the said proeprty shall be applicable to you and also if any rent income is received out of the said proeprty it will be taxed in your hand completely and not in your wife name eventhough property is registered in her name.

Vishrut Rajesh Shah

CA, Ahmedabad

928 Answers

39 Consultations

5.0 on 5.0

Talk to Vishrut Rajesh Shah

Dear Sir,

You can very well claim to be the deemed owner but its obvious that the AO may not agree to your point of view and in such cases you may have to fight it out or apply for an appeal.

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

Rohit R Sharma

CA, Mumbai

2104 Answers

95 Consultations

5.0 on 5.0

Talk to Rohit R Sharma

Dear Sir,

It's a litigious issue and ideally the person who is the owner of the house is eligible for deduction. any person who is not the owner can't claim deduction.

Abhishek Dugar

CA, Mumbai

3576 Answers

183 Consultations

4.8 on 5.0

Talk to Abhishek Dugar

The rebate of interest on housing loan can be taken by the registered owner of the property

Shyam Sunder Modani

CA, Hyderabad

1408 Answers

164 Consultations

5.0 on 5.0

Talk to Shyam Sunder Modani

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!

Ask a CA