My mother owned a flat for which I paid rent to her so that I can show it as her income on the returns. We recently sold the flat and purchased a new flat. In order to save taxes I decided to take a home loan for the flat hence I was the first owner and my mother the joint owner. During the purchase of the flat we had a few doubts about taking a home loan and also we had to make the payment immediately hence we did not take a home loan. As I have already purchased the house and the house is on my name nor can I claim a home loan benefit neither can I show rent in my papers. Please guide me as to how I can save on my taxes?
Answered on November 08, 2017
Question is vague. You will not be entitled to deduct any amounts towards rent in your Income tax returns as the property will be used for your own residence. You can however pay interest to your mother towards the amounts invested by her whilst acquiring the flat.
