Can I claim tax exemption for a property in my wife’s name?

Hi Sir,
we have purchased a property in delhi on my wife name. me and my wife are having joint Loan with bank.but as my wife is housewife i am paying all the EMIs. but when i am filling the details in loss of property section is it saying that you can avail the benefit only if you are having any share in property or joint owner of property but as per registry my wife is the owner of property.

in short,  Can I claim tax exemption for a house property in my wife’s name, for which I am paying full EMI, since I am the deemed owner. i am co-borrower of loan.

is there ant way forward as either i have to pay huge amount of Tax. Please help !!
Asked 11 months ago in Income Tax from Delhi, Delhi
Dear Sir,

In case of house property if you jointly own the share of house property than same shall be subject to tax at the share of property only and hence your wife will able to claim loss to the extent of her share and you will able to claim loss from house property to the extent of your share only. 

However if the entire funding is done from your account only. Means Down Payment, Property Acquisition charges and total loan repayment than you can claim the entire amount of housing loss in your name considering you are the only owner of the property and your wife do not own any financial stake in the property.

But mind that by claiming and putting this argument this will also result into 100% Capital gain tax at the time of sale of property and tax liability shall not be divided at that point of time.
Vishrut Rajesh Shah
CA, Ahmedabad
194 Answers
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Sir in the present case as per law the owner of the property can claim the benefit of interest and principle of Housing loan taken. In your case you cannot claim the same.

You can have a gift deed or your name included in the property to avail the same with permission from the Bank from which you took loan.
Shyam Sunder Modani
CA, Hyderabad
955 Answers
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Hello Sir,

In your case it appears that the Property is in your wife's name which is purchased out of your funds/ or is being purchased out of your funds.

In such a case, the income from the property will be clubbed in your name. As the house is purchased out of your funds, which in itself is a complicated issue.

It is better if you make a Gift Deed from your wife to your name and get the flat transferred to your name. In order to avoid current as well as future complications. i.e Capital Gain at the time of Sale.


Hope this clarifies your Query. 

Feel Free to get back for any further clarifications.

Thanking You.

Regards,
CA Rohit R Sharma.
Rohit R Sharma
CA, Mumbai
719 Answers
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