Tax benefit - home loan is in the name of husband, but home is registered in the name of wife

[atul mittal]

if home loan is in the name of husband, but the home is registered in the name of wife, who does not have any income, & husband repay the loan, what tax benefit he will get ? AND in case of loan & registry both are in the name of wife, & husband repay the loan, can he get the tax benefit.

[Rama Krishana]

The deduction of Rs. 1.50 Lakhs is available in case of self occupied property only. Therefore, you need to ascertain that whether husband is in the capacity of a owner of house property which is self occupied. If this condition is met, he can claim the deduction. But, it is no so in case the property is in name of wife since the owner of the property is wife only. Therefore, in my view, the husband is not eligible for claiming deduction where house is in the name of wife. But, if the registry is in the name of wife and husband both, the husband can claim that he is the owner of the house for his share, he can claim the benefit of interest or repayment of principal amount. But, let me clear that mere registry may not be enough. It is the real fact which would determine the ownership and therefore eligibility of tax benefits.

[shyamal roychowdhury]

I make little modification . The problem is as under :- The house loan is in the name of husband 7 registry in the name of both husband & wife . Loan is repayed by husband & the property appears in his balancesheet . The house is on rent under rent agreement signed by wife by virtue of registry , The rent ch comes in the wife name . Both husband & wife are I,TAS assessee & both are under 30% bracket. In the scutintiny assessment of wife the assessing officer wants to treat the income under other income since she has not contributed any thing towards purchase . If this is agreed is their any problem will be husband I.TAX RETURN . They are assessed in different circle . Thanks S . ROYCHOWDHURY

AI Summary

Home loan tax deduction depends on legal and beneficial ownership, not mere repayment by a non-owner. Deduction for home loan interest and principal requires the claimant to be the owner of a self-occupied property; repayment by a non-owner does not create entitlement. If the property is registered jointly, each owner may claim deductions for their share provided factual and beneficial ownership support it. Mere registration may be insufficient; contribution to purchase, beneficial ownership and real facts are relevant, and an assessing officer may scrutinise attribution of rental income if the registered owner has not contributed to acquisition.