Re: Claim of housing loan interest--Property in Mom's name

Hi Purnima,

The sine qua non of deduction of interest u/s 24 as well as the deduction of principal u/s 80C is that the income in respect of which the deduction is sought to be claimed must be assessable under the head "Income from House Property"--- in the hands of the assessee and not just anyone. A son doesn't become liable to be taxed for the house property owned by his mother. As such your client won't be able to claim deduction of interest u/s 24(b). Even if the property had been owned jointly, your client would've been able to claim proportionate deduction. But even now if the property gets re-registered in the son's name—after being duly mutated in the land revenue records—the son will be able to claim the housing loan interest. But that might involve coughing up stamp duty at the sub-registrar' s office. Some states have exempted payment of stamp duty in case of family transfers of immovable properties. Verify it from the Sub-registrar' s office. Thanks,CA Sanjeev Bedi--- In http://us.mc508.mail.yahoo.com/mc/compose?to=ICAI_CIRC_MEERUT_CA%40yahoogroups.com, Purnima Jolly wrote:>Hi Friends, I have a query related to claim of housing loan interest. One of my client bought a house in the name of his mother by availing loan from bank. Can he deduct the payment of interset on housing loan from his salary income. Thanks and regards Purnima