No tax benefit for maintenance payment

– Ravish

Since, both you and your spouse are co-owners, income from house property will be taxed as per your respective share in the property. However, if the payment for the purchase of the property and the EMI for the home loan is being made from your funds only, then for the purpose of computing the income from the house property, you will be considered as the owner of the property for tax purposes and income from the house property. And the specified deductions will be assessable in your hands only.

In addition, a taxpayer is eligible for the following deductions while computing income from house property: Gross annual value of the property (nil for self-occupied property), paid from standard deduction on 30% of the annual value of the property Municipal tax (nil for self-occupied property) and interest payable on housing loan (up to specified limit). Thus, in view of the above, no deduction is available for any maintenance expenditure incurred in respect of house property.

Parizad Sirwalla, Partner and Head, Global Mobility Services, Tax, KPMG in India replied.

If I pay my son’s house tax, LIC premium, medi claim etc from my bank account, debit and credit cards and later my son transfers the exact amount from his account to my account, will he be eligible for income tax deduction? can claim?

—Dolly Moga

Since the payment is initially made by the mother, she will become eligible to claim such deduction. A person can claim deduction under section 80C for life insurance payments made for self, spouse and children. However, if the son intends to claim deduction in respect of such payments and reimburses his mother the exact amount, he may do so on the grounds that the deduction under section 80C is claimed by that person. who has contributed the money. taxable from his income.

It is pertinent to note that the provisions of the Income Tax Act, 1961 do not specifically provide for any provision whereby deduction by way of reimbursement can be claimed and in case of any inquiry by the Income Tax Department, such person need to justify the reimbursement for such payment through bank statement and the authenticity of such claim.

As per section 80D, mediclaim paid by an individual for self, spouse and dependent children is allowed up to the prescribed limit. If such children are not dependents, the mediclaim paid for such children is not admissible under section 80D. In a case where the son wants to claim mediclaim deduction under section 80D, the son needs to ensure proper documentation for proof of reimbursement and the same should be justified in case of any scrutiny assessment by the tax department.

Dr. Suresh Surana, Founder, RSM India replied.