Tax exemption for a property bought on Power Of Attorney Basis
Tax exemption for a property bought on Power Of Attorney Basis is available under Section 27 of I-T ActApnaloan.com Research Bureau
10 Aug 2007
I am planning to buy a house for my own residence on "power of attorney" basis and a bank has also agreed to give a home loan to finance this acquisition. Since I am not technically the owner of the house, will I be eligible for the tax benefits on the loan repayment?
Tax benefits on loan repayments are available only to owners. What constitutes ownership is a complex legal subject and has been the subject matter of much litigation in the courts. With the introduction of Section 27 (iiib) of the I-T Act, the power of attorney holder is the "deemed owner" of the property and is eligible for the tax benefits.
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