I have taken home loan as a borrower..owner is my father..once the loan gets sanctioned property will be gifted to me by my father..shall i get tax benefit becoz in loan i am not owner..i will be owner after loan gets sanctioned..how to apply for tax benefit? Please advice
For Taxation benefit in home loan there are following conditions
1. You have share in House
2. You are main or co borrower in Loan
3. repayment must be paid through you ( either by direct payment to loan provider or pay to person who paying ultimately to loan provider)
thus in above case if you are co-borrower in loan , 100% property transferred in your name and EMI also paid by you than you can claim 100% benefits avail on Home Loans i.e. Under Income from house property and under Section 80C
Can i change documents submitted to bank after sanction of loan becoz in loan application my father is owner..but to get tax benefit in bank statement my name has to be there as a owner..my father will gift it after sanction of loan coz permission is in his name..càn i change bank statement after gift deed?
Sir,
Since you are not owner of property the loan get sanction shall not be in the nature of housing loan. And if the fund borrowed is not for the purpose of housing loan than interest can not be claimed as deduction u/s 24(b).
The loan is housing loan only..but while applying i m not owner of the property..i will be owner after loan is sanctioned..can i get tax benefit by showing ownership document of me along with bank statement where my father is owner..
The loan is housing loan only..but while applying i m not owner of the property..i will be owner after loan is sanctioned..can i get tax benefit by showing ownership document of me along with bank statement where my father is owner..
If the loan is housing loan and you have used it for the purpose of purchasing property or making any payment related with the property than you can claim benefit of the same irrespective of date of trasnfer of ownership. However the interest expenses can only be claimed in the year in which property comes in your name
It looks as though you are taking housing loan on existing property, whether it is held in your name or in the name of your father. It is then in the nature of mortgage loan. In such case, you will not get the benefit of deduction of either interest or principal in your income even if the property is transferred to you subsequently.
However, if the loan is taken for the construction or acquisition of a residential house, you will be able to claim interest and principal, subject to the limits and conditions specified u/s 24 and 80C and 80EE, from the date the ownership is passed on to you.
Hi,
Deduction from Housing Loan taken from any Bank/Financial Institution is available to you provided you are the Owner of the Property in the Financial year in which you want to claim the Deductions. So, ensure the House is gifted to you by 31-Mar-2017 if you want to claim Deduction in current FY.
Note: You can claim Deductions u/s 24, 80C & 80EE depending upon the conditions and limits specified therein.
No problem you can get the benefit. After gift deed is registered you need to submit copy of the same to the Bank.
Also we assume that the EMI is going from your account.
Hello Sir,
I am totally puzzled as to how can your banker grant you a housing loan for a house in which you are not an owner or a co-owner in the first place.
Leaving that aside, you can very well claim the tax benefit if you become the owner of the property and the loan is a housing loan.
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
Dear Sir,
Deduction from Housing Loan is available if you are Owner of the Property in the Financial year in which you want to claim the Deductions.
So, please ensure that the property is gifted to you by 31-Mar-2017 in order to calim the deduction.
Thanks and Regards
Abhishek Dugar
CA CS B.Com
