Problems with your home loan?

He took a home loan two years ago with my brother as a co-applicant.

My brother is the one repaying the entire loan. So it is rightful that he claims the interest benefit under Section 24 and the principal repayment benefit under Section 80C.

Is it right to claim the same taking into account that the term owner means not the actual owner but the one who is actually occupying the house (CIT vs. Poddar Cement Pvt Ltd.)

- Vishnu Dutt Sharma

Only owners or co-owners are entitled to claim deduction in respect of a loan taken taken to acquire/ construct a house property.

The court decision quoted by you has no relevance as the context was entirely different (legal ownership versus beneficial ownership), unlike the facts presented by you.

• Paying EMI but no home yet?

My wife and I took a joint home loan from a private bank. The house was purchased in my wife's name. At that time, my wife was also employed and the tax benefits were not different if the house was jointly or singly held.

However, it so happens that my wife changed her job (lower salary) and, because of the new tax laws, we are not getting the full benefit of the tax rebate available. Is it possible now to re-register our house in our joint names and avail the tax benefit on the loan? 

- A K Rajarajan

The re-registration will require the payment of stamp duty.

You will also need the permission of the bank which should logically not be a problem since both of you are co-borrowers anyway.

Once the property is registered with both of you as co-owners, you should be able to claim the deductions in respect of the loan installment due for your share of the property.

Please read Who gets the tax benefit in joint home loans?