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  • Category: Tax Planning

    About income tax return on house loan

    Are you paying house loan? Looking out for understanding the income tax returns norms for house loan? Find responses from experts here.

    My mother is a housewife with no income but she has a house loan of 24 lakh on her name. I am paying the EMI on behalf of my mother by depositing money in her account every month.
    Can I get a tax return in this scenario?
    I am a salaried person. Can you please assist me through this situation?
  • Answers

    4 Answers found.
  • You can claim the income tax exemption provided your name is also included in the application for a loan to the concerned bank.
    When we apply for a loan what we have to do is we have to mention the name of the owner of the house as number one applicant. Then your name as the applicant two. Then they will take your signature and other details. In the loan sanction letter also they will mention both names. Anyone of you can claim the income tax exemption for that money as per IT rules. If your name is not there you can't claim the exemption. Then you can claim only HRA exemption as per the IT rules by showing that you are on rent in that house and your mother can give you a rent receipt.
    If already you have taken down without your name, you can ask the lown sanctioning authority to include you name as applicant two. If they say there is no provision you can apply for transfer of the loan to another organisation wherein you can include your name also as an applicant for a loan.

    always confident

  • No. You cannot take benefits of paying home loan EMI by merely depositing money to your mother's account. You can only do that if you are either co-applicant or you are provided right to pay on behalf of her with suitable documents by agreement between bank, you and your mother. The loan paper ask for owner of home and your name should be there to get right to pay the EMI and then you can use that amount for income tax return.

    Dr. Paresh B. Gujarati.
    Mechanical Engineer.
    'I'mprovement always begins with 'I'.

  • No, you won't be able to get any income tax benefit for paying home loan EMI either under Section 80C (home loan principal) or under Section 80EE (home loan interest for first-time buyers) of IT Act. This is due to the simple reason that the owner of the house is your mother and you are paying the EMI only on her behalf. You can get the income tax benefit only if you are co-applicant.

    "If you are killed in action, you go to Heaven. If you win, you rule this Earth (as beautiful as Heaven). That is why, O son of Kunti, take a firm resolve and fight!"-- Shrimad Bhagwad Gita

  • To be able to get benefit of housing loan you need to contact with following 2 complusory requirements:
    1. You must be co-owner of the property.
    2. You must be co-borrower in the loan.

    Deduction of principal and interest will be allowed in the same ratio as I'd the co-ownership ratio.

    In your case there will not be any benefit available to you.

    Live before you leave.

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