Respected Experts,
This query is regarding getting home loan on a property which is in my wife's name and claiming income tax deductions (principle and interest for self occupied) for the same. Here is the complete history of the property.
1. I had bought an house (sole owner and acquired by my own money) in 2009 which I sold in 2013. I have claimed capital gains exemption as I sold my property after 3 years of purchasing my property (house).
2. Invested the money in a new property jointly purchased along with my Father-In-Law (he paid some more amount), which was registered in my wife's and Father-In-Law's name.
3. My wife is not having any source of income and she is a home maker. Not filled tax at all in her name.
4. My Father-In-Law gifted his part of the property to my wife through a registered gift deed. All my Father-In-Law's legal heirs signed the same (FIL, MIL and BILs).
4. Now the property is entirely in my wife's name. I would like to go for a home loan and construct a new house on this property.
These are my questions:
1. I would like to claim tax benefits for the home loan that I am going to avail. What are the legal aspects that I have to consider to make sure I can claim tax benefits (principal and interest)?
2. What is your opinion on the above transaction? Could you please advice if I need to take care of any other legal aspect of it?
Your follower,
Sagar
