I receive many queries with regards to avail tax benefits against repayment of home loan. These are mostly related to joint loan, loans from friends and relatives to purchase/construct house property etc. Some of the queries are;

  • Question…“My spouse (house wife) owns a house property (Sole Owner), but I do all the repayment of home loans; can I take tax benefits for such repayment towards borrowed capital?
  • Question…“I took a loan from my friend to buy a house property, can I get any benefit if I repay my friend with interest?”
  • Question…Me and my spouse have joint loan (wife has no income and name sake co-applicant of loan), can I be benefited for the deduction at 100% since all the repayments are being done by me?”

Joint Home Loan

There is no end to such queries until there is something clearly (I mean straight answer) written in the rule book of IT Law. In this article I tried to bring in some general (but frequent) queries from borrowers which will be justified with some logics.

A – House Property is owned by wife and loan repayments are done from Husband’s Income fully:

I must say it’s a duty for every spouse to take the responsibilities of his/her partner in all means, and there is nothing bad to know what former gets in return (in good sense of course 🙂 ) from the later.

There are many instances where a residential plot/property has been acquired/owned by wife and later through bank finance, construction or further renovation starts. Some cases wife has no income, so husband makes all the repayment of principal and interest towards the borrowed capital. Now the question arise; is the husband eligible to get interest & principal deductions u/s 24b & 80C respectively even though he is not the owner of the property?

To answer to the above question, first you need to understand how the property was actually acquired and what is the loan structure (like holder/holders of the loan)?

Situation 1: The property might have been acquired by wife through gift from parents or inheritance property.

In such case any loan taken jointly with husband or singly, husband will not be entitled to get any tax benefits of principal repayment u/s 80C and interest deduction u/s 24b even if he serve the loan repayment from his income. It doesn’t matter whether husband makes all (or part of) the repayments. It is even immaterial whether he is a first applicant or sole applicant or not an applicant at all. To claim tax benefits, husband needs to be the owner (or co-owner) of the property.

The solution may be; if both the spouse enter into an agreement where wife declares to sell and transfer part of the ownership of the house property to husband, then husband will be able to claim the tax benefit. Such sell/transfer requires prior permission of the lender.

Situation 2: The property has been acquired in the name of wife only, but source of fund is husband.

Here the fact is that 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.

B – Husband and wife are co-owners of house property and also co-applicants of Home Loan, but all the repayments are being done by husband alone:

In this scenario, husband can very well claim income tax exemption as specified under the act. If the husband is the only person repaying the loan, then he can claim the entire tax benefit for himself (provided he is an owner or co-owner). Both the spouse should enter into a simple agreement where wife should be stating that husband will be repaying the entire loan. This applies vice-versa where husband and wife are co-owners of house property and also co-applicants of Home Loan, but all the repayments are done by wife alone.

C – Loan taken from Friends & Relative to construct or purchase of House Property:

Any interest payment to friends and relatives in respect to capital borrowed  from them can be claimed u/s 24b, but only against a certificate received from them. In the absence of the certificate, you would not be eligible for the deduction. Interest repayment to friend or relative for such borrowed capital will be treated as income for them in the financial year in which it is received and they are required to pay taxes on such income. As far as the principal payments are concerned, they would not qualify for tax benefit as loans only from notified institutions and banks are eligible for such deductions u/s 80C.

D – House is bought jointly with wife and home loan taken jointly. Repayment is also happening jointly:

If wife is working and has a separate source of income, both of the spouse can claim separate deductions in their respective income tax returns. The repayment of principal amount of the loan can be claimed as a deduction under section 80C up to a maximum amount of Rs.1 lakh individually by each co-owner. If the house property is self-occupied by each co-owner, each co-owner shall be entitled to the deduction individually on account of interest on borrowed money up to a maximum amount of Rs. 1.5 lakh. If the house is given on rent, then there is no restriction on this amount. Both co-owners can claim deductions in the ratio of ownership.

It is immaterial what the repayment mode is with regards to avail deductions. EMIs can be served from a joint account, from two different accounts owned by each co-applicant respectively or from a single account either from husband or wife.

Home Loan Deductions; if you are not the Owner or Loan taken from Friends & Relatives

72 thoughts on “Home Loan Deductions; if you are not the Owner or Loan taken from Friends & Relatives

  • September 22, 2014 at 8:26 PM
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    Please clarify below queries

    1) I took a loan against property of 15 Lakhs INR. Can I register a Plot/Flat only on my wife name?
    2) I have sold a plot with long term capital gain of 3Lakhs INR. Can I register a Plot/Flat only on my wife name with that money without paying long term capital gain? Can I say IT department that I did not buy plot/Flat with that money but plot/Flat is registered on my wife name ( house wife with out any other income).

    What are the implications/benefits for me if

    1) I buy plot/flat with registration to my name?
    2) I buy plot/Flat with wife name?

    Reply
    • September 24, 2014 at 10:51 AM
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      Hi Ravindra,

      Find answers in sequence to your queries;
      1. This is your choice. 🙂
      2. You will get exemption from LTCG if new house property is in your name.

      Ans to other queries;
      1. You will get tax exemption to the extent of LTCG amount invested in new house property. Remember! No, benefits are given on purchase of plot.
      2. No tax benefits.

      Reply
  • October 5, 2014 at 3:00 PM
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    Hi,
    My parent has taken the property on my Mother’s name and she is home maker. My Father is retd. Army. I have taken the complete loan to construct the flat from LICHF. I am working for MNC in Bangalore. How can i avail the tax benefits..? Because my finance team wants that property and loan both should be on my name. Can i claim it by ITR..? That shouldn’t be the fraud with government.Please reply me.

    Thanks.
    Monu Kumar Choubey

    Reply
    • October 5, 2014 at 5:03 PM
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      Hi Monu,

      Your finance team is right. Both the property and loan should be in your name to claim such benefits.

      Reply
      • March 15, 2015 at 11:46 AM
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        Hi Mr Patra

        In Benami Act, you had mentioned that if property is purchased in name of wife and complete financing had been done by husband the he could claim IT exemption on home loan interest through Assessing Officer.

        Isn’t the same possible when I take property in 100% mother name and loan in my name? Kindly elaborate as I a stuck up with this in 2014-15. If this is not possible then what is the right way now before 31st March 2015 to save huge tax implications.

        Thanks for your kind suggestion.

        Reply
        • March 18, 2015 at 1:23 AM
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          Hi Mohan,

          Your logic is right. But this will really be a complicated situation for you to justify AO to get the benefits. So if you would have been the part owner at least then there is a fair chance of getting the claims.

          Reply
  • November 24, 2014 at 8:08 PM
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    I have taken home which is in under construction. I & my wife are going to apply Home loan.
    Can my wife is eligible for income tax benefit. If not then what is the solution.

    Reply
    • November 24, 2014 at 11:02 PM
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      Hi Chintan,

      Information is incomplete. Anyways, it depends if she is a part owner of the property and she also contributes towards the loan repayment.

      Reply
  • December 1, 2014 at 1:14 PM
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    Please note that I am going to purchase newly built house in my spouse name only, I would be a co-borrower in home loan. I would like to know following points..
    1. Can I avail income tax deduction on principal and interest payment of Home loan, if property is in “my spouse name Only”?
    2. Can I avail benefit of registration fee if property is in the name of Me & my wife, please note I am from Gujarat.

    Reply
    • December 27, 2014 at 10:03 AM
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      Hi Palkesh,

      Being a co-borrower in loan would not be enough. You should also be a co-owner of the property to take the benefit of tax deductions. Even no benefits (from tax saving point of view) will be allowed wrt registration fee paid by you.

      Reply
  • December 18, 2014 at 3:40 PM
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    Hi,

    My wife, before we both got married bought a house and was paying the home loan.

    After our marriage, she quit the job and since then I’m only paying the loan. House is on her name and Loan is also on her name. Am i eligible to get any tax benifits?

    Please reply.

    Reply
    • December 23, 2014 at 8:39 AM
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      Hi Jabez,

      You will not get any tax benefits.

      Reply
  • December 24, 2014 at 4:20 PM
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    We have purchased a plot with old house on my Husband name. We planned to renew the house and took joint housing loan. Both of us are working. Is it possible for both of us to claim the tax benefits? or only the person whose name is there in Sales Deed only can claim?

    Please reply to my mail also.

    Reply
    • December 27, 2014 at 12:03 AM
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      Hi Bhavani,

      Tax deductions will be allowed to the person whose name is there in deed.

      Reply
  • December 28, 2014 at 3:38 PM
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    Hello Sir,

    Before marriage, I bought the house in Mumbai and was paying EMI and availing the Income tax benefits and I am the only owner.
    After marriage, I went to university for study and all Home Loan EMI payment in being continued by my wife though she is not owner of the house.
    We want my wife to get the Income tax benefit for housing loan.

    Can you let me know if it is possible and how?
    In this web page, I came across similar case where you have given the solution by making declaration under Benami Transaction Act. Can it be applied in this case as well?

    Thanks and Regards,
    Swapnil

    Reply
    • January 9, 2015 at 12:14 PM
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      Hi Swapnil,

      Your wife will not get any benefit because she is not the owner or joint owner of the house property.

      Reply
  • January 4, 2015 at 5:32 PM
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    Hi Sir,

    I and my wife are co owner of a house. We have a home loan in the name of my wife only (a bank employee getting benefit of lower interest rate). Am I entitled for rebate on the interest repayment.

    Thanks.

    Reply
    • January 5, 2015 at 10:40 AM
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      Hi Rajesh,

      You won’t get any benefits as long as you are not a borrower or co-borrower for the loan too.

      Reply
  • January 5, 2015 at 12:08 PM
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    Thanks for the prompt response.

    I have another query. We got a home loan sanctioned in 2010-11, the first disbursement happened in 2011-12, the last disbursement took place in 2014-15, and construction of house was completed in Jan 2015. As the construction happened after 3 years from sanctioning of loan, can rebate on income tax be claimed upto limit of 1.5 lakhs during 2014-15, or is it restricted to Rs.30,000. Similarly for interest accrued prior to construction, is the rebate limit Rs.1.5 lakhs or 30,000.00. The pertinent question is whether the 3 years period to be counted from the date of sanctioning, 1st disbursal or last disbursal.

    Thanks in advance.

    Reply
    • January 22, 2015 at 11:57 PM
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      Hi Rajesh,

      There are many arguments to this, but I think you will get the normal deduction which is now Rs. 2,00,000 per annum (for self-occupied house property) including 1/5th of per-construction interest . Sorry for late response!

      Reply
  • January 6, 2015 at 12:23 AM
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    Thanks for the prompt response. I have another query which i request you to clarify.
    We got a home loan sanctioned in 2010-11, the first disbursement of Rs.90,000/- (out of total loan of Rs.18,00,000) took place in 2010-11, the remaining amount was disbursed during 2011-12, 2012-13, 2013-14 and 2014-15. The construction of house was completed and possession was given in Jan 2015. As the construction happened after 3 years from sanctioning of loan/first disbursement, can rebate on income tax be claimed up to limit of 1.5 lakhs during 2014-15, or is it restricted to Rs.30,000. Similarly for interest accrued prior to construction, is the annual rebate limit Rs.1.5 lakhs or 30,000.00. The pertinent question is whether the 3 years period to be counted from the date of sanctioning, 1st disbursal or last disbursal.

    Can i leave out the amount disbursed during 2010-11 and claim rebate on interest paid on amounts disbursed during or after 2011-12.

    Thanks in advance.

    Reply
  • January 6, 2015 at 2:37 PM
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    Hi Sir,

    My husband’s parents are having an independent house at Chennai. We planned to construct first floor. Now both ground floor and first floor will be on his dad’s name. Me and my husband planned to take a home loan on his name and his dad’s name, as the property is on his dad’s name. His dad is retired. Do we both have the eligibility of tax exemption or my husband alone? What should be done, if we both have to get exempted from tax or for my husband alone?

    Reply
    • January 9, 2015 at 12:08 PM
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      Hi Pavithra,

      You will not get any benefits of deduction towards loan repayment. For this you should be owner or joint owner in the property.

      Reply
  • February 11, 2015 at 7:03 PM
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    Sir,
    In some banks under staff housing loan schemes simple interest is charged and accrued interest is hold in a separate account. Tax benefit u s 24 B on annual basis is availed after submitting Form 12 C on this accrued interest. When the principal loan amount is fully paid and benefit us 80C is availed then EMI or anyway repaid amount is credited to clear / repay this accrued interest.
    So, here question is this benefit u s 80C will be available at the time of repayment of this accrued interest or not.

    Reply
  • February 11, 2015 at 7:07 PM
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    Sir,
    In some banks under staff housing loan schemes simple interest is charged and accrued interest is hold in a separate account. Tax benefit u s 24 B on annual basis is availed after submitting Form 12 C on this accrued interest. When the principal loan amount is fully paid and benefit us 80C is availed then EMI or anyway repaid amount is credited to clear / repay this accrued interest.
    So, here question is this benefit u s 80C will be available at the time of repayment of this accrued interest or not.

    Reply
    • February 12, 2015 at 9:51 AM
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      Hi Kamleshwar,

      Payments towards interest (even accrued interest) are not allowed as deduction u/s 80C.

      Reply
  • March 1, 2015 at 12:47 AM
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    HI,
    I have made one time payment of my home loan in Jan 2015 after taking money from my father. Now I have a provisional interest statement from bank for 14-15. The property is under construction.
    Am I entitled to get the income tax exemption against the payment for complete principal amount.
    In my case principal amount payment made is about 70% of my CTC.

    Reply
    • March 1, 2015 at 1:42 AM
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      Hi Adil,

      No deductions are allowed until construction is completed.

      Reply
  • March 7, 2015 at 4:50 PM
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    Sir, i have availed home loan against construction link plan. The first disbursement was made in june 2010 and the last disbursement against possession of flat was made in June 2014 with flat handed over to me in July 2014.
    Since the construction has exceeded three years mark, can i claim interest rebate in five installments or Rs. 30000/- as per the rule.Will my rebate on interest shall have reference as the first disbursement of loan or last disbursement for calculating the three years limit.
    Thanks in advance.

    Reply
    • March 9, 2015 at 1:25 AM
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      Hi Amit,

      As per the rule, you will be able to claim only Rs. 30,000 because of 3 years is over. But I have been seeing many such cases where it is not borrower’s fault, but the fault of builders who have just delayed the projected and took sweet time to complete the it. Also in such cases tax payers have tried to claim 1/5th pre-construction interest along with the current financial year interest in which there income is subject to tax. Luckily those have been approved . But I can’t tell you to go ahead and do it 🙂

      Lots of home loan borrowers demand is under process to bring some amendment and I hope soon something will come as an exception to such rules.

      Reply
      • March 9, 2015 at 12:55 PM
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        Dear Sir,
        Thanks for your prompt reply. Sir, as per the rule it states three year from the capital borrowed… it doesn’t states whether its first or last.. don’t one can think that benefit of doubt regarding the rule should go in benefit of loan borrower.. or its is only luck by change to get our claim of 5 installments.. as an expert what should be your advice.??
        Again thank in advance…

        Reply
        • March 9, 2015 at 1:07 PM
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          Hi Amit,

          In my case I would have gone for claiming 1/5th (but not 30K thing). If it doesn’t not approve then I will file an appeal against the same 🙂

          Reply
          • March 9, 2015 at 2:59 PM
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            Dear Sir,
            Thanks a lot for your guidance.

          • March 9, 2015 at 6:28 PM
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            You are welcome Amit!

  • March 11, 2015 at 2:17 AM
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    Hi, my father borrowed a housing loan and with co applicant of my elder brother. But property just in the name of my father. I just want to know that if my father make me coowner in property by will. But loan not in my name.. Then can i get tax benefits.?

    Reply
    • March 18, 2015 at 1:13 AM
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      Hi Arun,

      No! you won’t get any tax benefit.

      Reply
  • March 20, 2015 at 2:08 PM
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    I have taken join home loan. Applicants are My brother, My Mother and my self.

    My brother and I are earning members and my mother is a house wife.
    I am looking for join loan sharing declaration form with says that
    – I am paying 50% of EMI.
    – My brother is paying 50% EMI
    – My mother is not paying EMI as she is house wife.

    Can any one help me to find proper declaration form which mentioned above details.

    Reply
  • March 23, 2015 at 3:01 PM
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    Sir,
    I own a plot on my name and I am planning to construct house on my own. I intend to take home loan jointly both on my name and my wife name in the ratio of 70:30. Since plot is in my name and the plan approval will be on my name. what kind of documentation is needed to avail joint home loan

    Reply
    • April 5, 2015 at 11:13 PM
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      Hi Sampath,

      Here I suggest you to check with bank for the requirement of documentations.

      Reply
  • April 18, 2015 at 4:34 PM
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    My brother purchased a house property 3 years back by taking loan from hdfc. For last 1 year he is not been having enough income to repay the loan / EMI and i have been supporting in for that. I transfer EMI money to his bank account and thus EMI are taken care. Neither i am a co-owner in property nor joint loan account holder.
    I wish to continue to repay EMI for this loan.
    Can you please suggest simplest and inexpensive way of claiming tax benfits for Interest and Principal being paid by me (as original source of income is me).
    Thanks.

    Reply
    • April 22, 2015 at 11:04 PM
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      Hi Mayank,

      You will not be able to claim any deduction benefits as you are not an owner/part owner of the property.

      Reply
  • April 23, 2015 at 5:49 PM
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    Hi ! I have a Housing Loan going on. The property is registered in my Wifes name. The Housing Loan was sanctioned to both of us as Co Applicants / Co Borrowers. The installment is deducted from our joint account in the bank. As I m a co borrower hope I can claim the income tax deductions and benefits. Please guide.

    Reply
    • April 23, 2015 at 10:20 PM
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      Hi Ganesh,

      It won’t help! You should have been co-owner as well to take repayment deduction benefits.

      Reply
  • April 26, 2015 at 7:28 PM
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    Hello,

    I bought a flat in my name with my wife’s name on the sale deed of the agreement by builder. At the time of loan processing, the bank official suggested that since my wife wasn’t earning member, better to strike off the name for successful loan processing. The agreement and all paperwork with builder had my wife’s name as a co-owner. However, Home Loan agreement has only my details. Can I still get deduction for my wife who’s now working? or Is it possible to add her name to help her get the tax benefit? Please help !!!

    Thank you.

    Reply
    • April 27, 2015 at 9:01 PM
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      Hi Rajive,

      Your wife will be eligible to claim deductions if she is also a co-borrower for the loan. For adding co-borrower, I would suggest you to talk to your bank if they allow for the same.

      Reply
  • April 28, 2015 at 10:47 PM
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    can i take tax benefit on interest on housing loan , if loan taken in joint name and property register in only spouse name?

    Reply
    • June 16, 2015 at 9:11 PM
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      Hi Sanjay,

      You should have also an owner or part owner of the property to take loan repayment deduction benefits.

      Reply
  • April 29, 2015 at 10:47 PM
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    Sir
    I have purchased an individual house and it was registered in my wife’s name. she is not working and repayment has been done by me, but loan was sanctioned in her name only. Iam an PSU employee as per binami act 1998 can i claim the income tax deduction?.

    Reply
    • June 16, 2015 at 8:52 PM
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      Hi Surya,

      To get the benefits of deduction of loan repayments, you should have either full/part owner & borrower in both house & loan respectively.

      Reply
  • May 18, 2015 at 10:43 PM
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    Hi,
    I am planning to purchase a flat in Bangalore and applied for Home loan.

    Now bank is asking for co-applicant, who is mandatory for sanctining loan.

    I want to add my wife as co-applicant, but she is house wife and dont have income.

    Is it pssible to add her as co-applicant?
    What are the documents need to submit?

    Thank you
    Raghav

    Reply
    • June 13, 2015 at 9:49 PM
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      Hi Raghav,

      Yes, your wife can be a co-applicant. For the required set of document, I request you to check with the bank.

      Reply
  • July 8, 2015 at 11:10 AM
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    Hi Soubhagya,

    We have applied for home loan, I am the applicant and my wife is co-applicant. As she is the house wife with zero earning, I will be doing the repayments of my home loan in full.

    I will go for the registry of my property with my wife’s name only to get the less interest rate from bank and less stamp duty.

    Now my question is that am I eligible to get the tax benefits in this case?

    please revert on this ASAP.

    Thanks,
    Swapnil Joshi

    Reply
    • July 10, 2015 at 11:17 PM
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      Hi Swapnil,

      This way you will loose the benefits of claiming deductions of repayment done by you. Make sure you are owner or part owner of the property as well.

      Reply
  • July 13, 2015 at 9:40 AM
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    Hello,

    I have a question on the home that we will be buying. We have one home loan going on for a self occupied house. My husband is the primary owner and myself the co-owner (even the home loan is in my husbands name with me as the co-applicant). I am claiming tax benefit on the same under section 24. Now, we are planning to buy another home loan for a second property which will be in my name and my husband as the co-owner. Even the home loan will be in my name with my husband as the co-applicant. Will we both be eligible for tax deduction on home loan interest for this second home? Here the difference is that the first home first owner is my husband whereas in the second home, I will be the main owner. Are we both eligible for home loan interest tax deduction on second property?

    Reply
    • August 16, 2015 at 8:54 AM
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      Hi Komal,

      Yes, you both are eligible to take deductions under section 24b towards interest payments towards the borrowed capital for both the houses.

      Reply
  • July 13, 2015 at 5:40 PM
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    Hi Soubhagya,

    First property i had taken jointly with mother before marriage. I am the second co- owner and entire tax exemption was taken by me. The home loan is over last year.

    I have now purchased second property jointly with wife. Here again i am the second co- owner . How can i avail max tax benefit. Can i again claim second property as first property and take tax benefits.

    Regards,
    Gaurav

    Reply
    • August 16, 2015 at 9:04 AM
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      Hi Gaurav,

      If neither of the houses are let-out then you can show one house as self-occupied and other one as deemed to be let-out. In your case you can show old house as self-occupied and new house as let-out to claim full tax deduction of loan interest.

      Reply
  • July 23, 2015 at 1:40 PM
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    Hi,
    My Questions is bit different,
    Consider the below situation:
    My Brother-In-law wanted to take the loan but he could not get, so i took a home loan and property is also in my name,( We have planned to transfer the property after loan is accomplished). My Brother-In-law gives my the money to repay the loan(through a bank transfer every month) and definitely ECS is deducted from my account.
    Now i want to take another loan to buy property for myself, but bank says that as you are having one running loan we you cannot take another loan(even if you get the money for loan every month from your Brother-In-law).
    Considering the above situation, my questions are:
    1. How should i show this situation In my ITR(as i get the money from my Brother-In-law every month), in my office i have already shown the above property in my name by office rule and also availed the tax benefit on running loan)
    2. How i can proceed to bank for taking home loan in the above situation , by any means( i mean how should i show up my salary structure so that i could get the loan legally).

    Thanks in advance.

    Reply
  • July 23, 2015 at 1:41 PM
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    Hi,
    My Questions is bit different,
    Consider the below situation:
    My Brother-In-law wanted to take the loan but he could not get, so i took a home loan and property is also in my name,( We have planned to transfer the property after loan is accomplished). My Brother-In-law gives my the money to repay the loan(through a bank transfer every month) and definitely ECS is deducted from my account.
    Now i want to take another loan to buy property for myself, but bank says that as you are having one running loan so they cannot give me another loan(even if i get the money for loan every month from my Brother-In-law).
    Considering the above situation, my questions are:
    1. How should i show this situation In my ITR(as i get the money from my Brother-In-law every month). Also in my office i have already shown the above property in my name by office rule and also availed the tax benefit on running loan).
    2. How i can proceed to bank for taking home loan in the above situation , by any means( i mean how should i show up my salary structure so that i could get the loan legally).

    Thanks in advance.

    Reply
    • July 26, 2015 at 12:02 PM
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      Hi Jal,

      Your brother-in-law is nowhere in picture. Currently you own a property. Transferring the property will be treated as sale for which you will have to pay capital gain tax. For ITR, show it as simple as you have presented in your employer’s declaration form.

      Yes, to get another loan, you will have to go with simple rules given. Prove your repayment capacity for another loan or close existing loan fully and apply again.

      Reply
  • July 23, 2015 at 8:36 PM
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    Hi, Me and my husband are planning to buy our home. But the problem is my husbands credit score is around 560 due to some previous financial problems. But now all the financial things are going good but credit score is taking lot of time to improve. We’ve liked a property a lot and want to book it right way. Now I want to know can my husband take home loan on my name, my credit score is nice and I’ve never applied for loan before but I’m a housewife. So it it possible that we take loan on my name and bank emi will be payed by husband ???

    Reply
    • July 26, 2015 at 12:00 PM
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      Hi Tani,

      Good credit score is not enough to get a loan. Along with this bank will also check your capability of repayment. I suggest you check with bank, if they are able to provide a solution as a joint loan.

      Reply
  • July 23, 2015 at 9:56 PM
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    Hi Soubhagya,

    I have a Home Loan of Rs. 15LAC from LICHFL, which i have taken on july, 2013 at a interest rate of 10% with 2 years fixed period. Now they are incresing my interest rate to 11.75% which is much higher so Now i want to shift that loan from LICHFL to My Parents. (I want to close
    loan from LICHFL By taking the loan from my parents) so that I will pay
    the EMI to my parents.

    I want to know what steps i need to take to achieve above and how will i get the tax benefit on the home loan from parents and what procedure i need to follow for the same.

    Thanks.

    Reply
  • July 24, 2015 at 3:51 PM
    Permalink

    Hello Saubhagya,

    I have a Home Loan of Rs. 15LAC from LICHFL, which i have taken on july, 2013 at a interest rate of 10% with 2 years fixed period. Now they are incresing my interest rate to 11.75% which is much higher so Now i want to shift that loan from LICHFL to My Parents. (I want to close
    loan from LICHFL By taking the loan from my parents) so that I will pay
    the EMI to my parents.

    I want to know what steps i need to take to achieve above and how will i get the tax benefit on the home loan from parents and what procedure i need to follow for the same.

    Thanks.

    Reply
    • July 26, 2015 at 11:07 AM
      Permalink

      Hi Vimal,

      You may create a notarized agreement between you and your parents. Make sure what interest you pay to your parents, they file as their income. Also note, no principal deduction will be allowed under such arrangement.

      Reply
  • July 28, 2015 at 12:15 PM
    Permalink

    Hi ,

    I am paying for a loan on my mom s name from past 4 years , my dad is co applicant and Mon is main applicant , Father expired now … , Is there a way i can get Tax benifit for repaying the loan

    Thanks
    Uday

    Reply
  • July 28, 2015 at 12:17 PM
    Permalink

    Hi ,

    I am paying for a loan on my mom s name from past 4 years , my dad is co applicant and Mon is main applicant , Father expired now … , Is there a way i can get Tax benifit for repaying the loan ..

    Thanks
    Uday

    Reply
    • July 29, 2015 at 12:22 PM
      Permalink

      Hi Uday,

      Here you should be a part owner as well as co-applicant of the loan to claim deductions.

      Reply
  • August 28, 2015 at 1:29 PM
    Permalink

    Kudos for the informative blog. I am seeking a clarification but opinion seems to be divided. In my case the Home loan was disbursed in two instalments first in 2010-11 and the second in 2011-12. I took possession in 2014-15. If I calculate the date of taking possession from the end of the financial year in which the second instalment was given I am eligible to claim 1.5 lakh. If I calculate it from the date of first instalment I am eligible for Rs. 30000. Can you please clarify? Thanks and Regards

    Reply
    • August 28, 2015 at 9:03 PM
      Permalink

      Hi Debasis,

      2nd loan will be treated as top-up loan. You will have to consider from the date for first loan.

      Reply
  • August 29, 2015 at 11:31 PM
    Permalink

    Hi I want to know I m planning to buy my second house in my wife name she is house wife . Can I claim my second property as let out .plz suggest me . I m bit confused .

    Reply
    • August 30, 2015 at 1:11 PM
      Permalink

      Hi Karun,

      Be a joint owner of the property to take the benefits.

      Reply

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