Reg income tax on home loan
vinoj pjoseph
(Querist) 26 June 2013
This query is : Resolved
SIR,
I P,Vairavanathan working as central govt servant took a home loan for the construction of house. The land in which the house made is in the name of my wife. The bank informed that the housing loan will be granted in the name of my wife and I wiil be a Guarentor for the loan. So kindly give me a clarification that if the loan granted in the name of my wife and i will be a guarantor shall I can claim for the Income Tax rebate for the interest paid on this loan as by the IT rules.
WITH REGARDS
P.VAIRAVANATHAN.
ajay sethi
(Expert) 26 June 2013
your chartered accountant will be able to guide you on this issue . since housing loan is granted in name of your wife and you are mere guarantor you wont be eligible for tax rebate
Rajendra K Goyal
(Expert) 26 June 2013
Agreed with the expert sh ajay seti ji. No tax benefit is entitled if you are not a owner or joint owner of the property with your wife.
prabhakar singh
(Expert) 26 June 2013
No tax rebate would be available to you at all for loan granted to your wife.
To obtain such a benefit get the land transferred in your name by a registered Gift deed from your wife and then take the loan in your own name for which bank would agree without any objection and all rebates of tax would then be available to you.
It would be better to go so for several other reasons too.