Hi Team, We are planning to take home loan for construction of our first house and land registery is on my father's name but i will be main applicant for home loan and father is co-borrower so will i be able to claim tax benefit because land is not on my name by father's but loan i am repaying Regards, Ankit
Hi Ankit
You can claim the tax benefits in respect of repayment of home loan only when you are a co-owner of the property.
Get your name added in the property by a gift deed from your father to claim the deductions.
Also, deductions are allowed after the construction of property is completed. Any expenses prior to completion are claimed in five equal installments starting the year in which construction is complete.
Ok so this is mandatory to have name in the property to avail tax benefits because some tax consultants said that no need to add name in property just be main applicant in the loan as borrower.
Ok so this is mandatory to have name in the property to avail tax benefits because some tax consultants said that no need to add name in property just be main applicant in the loan as borrower.
Being a co-owner is necessary for claiming deductions.
Ask the consultants for case law citation or section on which basis they are saying so.
hii
For getting home loan taxation benefit 3 conditions is mandatory
1 property must registeered in your name
2 taking home loan in your name
3 payment of EMI from your taxable income
thus must assure to comply with above all conditions before taking home loan tax benefit
Hi Ankit,
It is always better to have your name in the property for which you are claiming tax benefits. Otherwise, income tax department may raise questions and you have to go into litigation.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hi Ankit,
Yes it is mandatory to have the property registered in your name. You will need own the property, be an applicant in the loan as well as pay the installments.
Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Sir,
If land is not in your name still you can claim deduction for interest on housing loan
Hello,
On a safer side get your name added to the plot of land even though for a small share to avoid litigation and hassles.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
