Ordinarily, the benefit of housing loan for repayment of interest and principal is allowed to the person who owns the property and is actually repaying the loan.
Q1. Since my wife is also earning, can she take benefit of housing loan? —Ashish Sharma
Ordinarily, the benefit of housing loan for repayment of interest and principal is allowed to the person who owns the property and is actually repaying the loan. Your wife can take the benefit of housing loan only if she is a co-borrower of loan as well as a co-owner of the house and is also repaying her part of the loan.
Q2. I have got a tax notice three years after filing the I-T returns for AY15. What should I do as it does not mention whom I should meet? —Pradeep Malhotra
Since you have not specified which kind of notice you have received, we suggest meeting the officer where the jurisdiction for your PAN lies. You can log into income tax portal with your credentials, go to profile option and check your jurisdiction.
Q3. Apart from salary income, I also get a rental income of about Rs 30,000 a year for a property in remote Uttar Pradesh. The property is in my father’s name and he is not alive. Do I have to pay any tax as the rent is paid in cash? —P S Kumar
Assuming, that after the death of your father, you are the legal heir for this property, the amount of rent received by you shall be included in your total income and you shall be liable to pay tax accordingly. It shall be considered under the head ‘Income from House Property’ and you shall also be allowed a standard deduction of 30% from the rent amount for maintenance expenses. Further, you can also deduct any municipal taxes paid while calculating this income.
Q4. I want to withdraw money from my PPF which has completed 10 years. Do I have to pay any tax? —Anuj Pawar
Any withdrawal from PPF account is exempt under Section 10 of the Income-tax Act, 1961. Hence, this withdrawal shall not attract any income tax.
Q5. Can I get tax benefit for taking loan from relatives to buy a property? —Adit Gaur
You can get the benefit of interest repayments on such loan under Section 24 of the Income-tax Act, 1961 and you will need to obtain a certificate of payment of interest from the lender along with its name, address and PAN. However, you shall not be eligible for any deduction under Section 80C for repayment of principal amount as it is allowed when the loan is taken from a bank or financial institution only.
The writer is partner, Ashok Maheshwary & Associates LLP. Send your queries to email@example.com