The Hindu Business Line : Real owner benefits

I HAVE booked a 1,200 sq.ft flat in Mumbai. It has a living room, a kitchen and three bedrooms with attached toilets. There is only one entrance to the flat. Two agreements have been entered into with the builder, one for the living room and one bedroom and the other for the kitchen and the other two bedrooms. Two numbers have been allotted for the flat, and both these will be written at the entrance. The total cost of the flat works out to Rs 34 lakh, of which I have paid Rs 4 lakh. The balance Rs 30 lakh is a loan and the interest on this is payable from April 1, 2005. The flat is under construction and possession is likely to be handed over to me in June 2006. The loan agreement is in the joint names of my wife and myself.

The entire EMI, however, will be paid only out of my salary income. Who will be entitled to claim the tax benefits in respect of the EMI?

Anonymous

Reply

The tax benefits can be claimed by the real owner of the property. This aspect will have to be decided on a case-to-case basis depending on the facts and circumstances of each case.

In your case, it appears that you are the real owner of the entire flat and, therefore, you should be entitled to claim the tax benefits notwithstanding the fact that a part of the flat is registered in your wife's name.

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