Claim of deduction - interest on house loan

[d.v. gupta]

a person has taken house loan from bank and registered the house in name of his wife. The int certificate and payment is from husband account. can husband claim deduction for int in income tax despite the house is registerd in name of his wife.

[Rama Krishana]

You need to establish that who is the owner of the house. If your wife is the owner of the house, you can not claim the benefit of interest paid on loan taken for the purpose of acquiring such house.

[CAGOPALJI AGRAWAL]

If husband has made the whole payment of house, he may claim the benefits, Reliance is being placed on the Cal HC decision 252itr0468

AI Summary

Property ownership determines entitlement to house loan interest deduction; payment evidence may enable the payer to claim. Entitlement to a house loan interest deduction depends on ownership and beneficial entitlement: if the wife is the owner, the husband cannot claim the deduction; if the husband paid the entire cost and can establish beneficial ownership or that he bore the economic burden, he may claim the interest deduction, a position supported by a cited Calcutta High Court decision.