Home Improvement Loan, Tax Benefits Not Allowed On Father's Property

Queries Ashutosh Sengupta, email I am 25 years old and have recently started working. My father bought a house on loan which is now completely paid off. But he is retired. Can I take a home improvement loan for the house and claim tax benefits on the same? Your right to a home improvement loan and/or tax benefit will depend on your ownership right on the property. If you are not named as owner of the property in the legal documents (property title), lenders will not give you a loan on that property. In such a case, the question of tax benefit does not arise. You can take a home improvement loan and claim the tax benefit on its repayment only if you are a co-owner of the property or your father gives it as a gift after signing a registered gift deed. Section 24 of the Income-tax Act allows for a deduction of up to Rs 30,000 per annum against interest paid on home renovation loans. That...