Tax on income

Asstt. Manager

I am retired Bank employee. My total pension is around Rs. 2,26,000/-. I have invested Rs. 70,000/- in PPF and Rs. 30,000/- in SBI Life horizon. Recently I have purchased a house in Bombay in Feb. 11 in coownership of my son. His name is first and mine is 2nd.  Taken a loan jointly. His name first in loan case. May I claim interest 50% rebate on interest charged to house loan as also 50% amount of stamp duty and registration of the house purchased in resale.

SHARADCHANDRA DANEJ.

 
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Legal

Registration charges can be claimed. But let us know from which bank account is your interest payment being debited i.e your account or your son's account or both.

 
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Advocate

May I claim interest 50% rebate on interest charged to house loan as also 50% amount of stamp duty and registration of the house purchased in resale.

Ans. Yes you may claim Interest on the housing loan. however since you have already crossed the qualifying threshold limit of Rs.1.00 lac prescribed under S.80C, you cannot claim the benefit of registration and stamp expenses. However since you donot have taxable income, there is no point in claiming interest. Your son may claim the benefit fully for the interest which may reduce his tax liability.

 
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ADVOCATE

That yourname comes only second, is immaterial.

It is presumed that as per the PURCHASE DEED, you have half right in the property, and that the property is used for the owners' own residence. If so,

- you can claim 50 % of the interest on the Housing Loan, provided you are also a borrower

- as you are already claiming  Rs 1lakh under S 80C, you can't claim further deduction in respect of your share of  the Stamp Duty paid.

 
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