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Q) Immediately after purchasing an ownership
flat, my father expired. He had taken HDFC loan and was well aware of the
tax provisions. My mother and myself are staying in the flat. I have been
paying the Equated Monthly Instalments (EMI) which consist of part
interest and part loan repayment. I have been receiving conflicting
opinions regarding the deductibility of the interest element and the
rebate on loan repayment. Can you give your opinion ? |
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A) It is not you but your father who had
borrowed the funds from HDFC. The rebates and deductions are not available
to those who have not borrowed the funds directly and these facilities are
not available to the successor to the property. This was the view taken by
the Gujarat High Court in respect of CIT v Rajkot Seeds Oil & Bullion
Merchant Association Ltd. (1975) 101ITR748. This is indeed very sad. I do
not think that it was the intention of the legislation to deprive the
inheritor of the property of these concessions.
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