Regarding relief in income tax for the ay 2013-14
sunil
(Querist) 30 December 2012
This query is : Resolved
Respected Sir/ Madam
In the AY 2013-14, I’ve taken joint home loan from SBI for purchasing a constructed house, and the loan has been used for the purchasing of the house.
I am the co-borrower of the home loan, my mother being the principal borrower.
Further, I am repaying the EMI of the loan. The property is registered in the name of my mother only. The 'ikraarnaama' of the property bears the name of both of us.
Also, in the loan documents it is mentioned that I'll be paying the entire loan amount.
My queries are:
Since the house is registered in the name of my mother only, would I be regarded as the 'owner' of the house under section 27 of the Income Tax act.
Whether I am eligible for the relief under sec 24 and sec 80c of the Income Tax act?
Would you please provide me with relevant circular(s) or rule(s) in this regard?
What documents do I need to claim the releif in the income tax?
Regards.
Raj Kumar Makkad
(Expert) 01 January 2013
In the given circumstances, you cannot avail the benefits under section 24 or 80c of IT Act because the house is in the name of your mother. Ikrarnama has no relevance after execution of registered sale-deed like repayment by you.
