LIC Housing Finance Ltd sanctioned a Housing Loan for a newly constructed House at Chennai on 11/05/2011 in the name of my son aged 23 and in my name aged 56. My son was the applicant and my salary was complemented to enhance the loan amount. Thus, the loan amount was sanctioned for a tenure of 240 months.The loan agreement was signed both of us. The House documents were also registered in both names.
The repayment by EMI is from my son's salary account by Electronic Clearing System on line.
Now, my question is whether I could adjust the EMI repayment as deductions against my salary for the purpose of income tax from this year onwards.
Kindly clarify.
M R SUBRAMANIAM
2 Answers from Attorneys
Are you a co applicant or just a guranter to your son. ?
Payments are being made from your son's account and salary, you will not be able to take the deduction benefit.
Regards '
As a co applicant you are entitled to get the deduction U/s 24 of the IT act provided if you constantly deposit your portion of EMI into your son's account,no matter from which account it was being paid to the lender.Make sure of depositing your portion of repayment of loan amount in your son's bank account or if you want it to be more transparent then make payments from both the applicants accounts as per the loan proportions accordingly.
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