cheque book

Hindustan Times (Chandigarh) - Estates - - ESTATES - HARSH ROONGTA Harsh Roongta is a SEBI reg­is­tered in­vest­ment ad­viser. He can be con­tacted on

My fa­ther owned land that was re­cently ac­quired by the gov­ern­ment. We will be paid by the gov­ern­ment in lieu of the land ac­quired by them un­der the land ac­qui­si­tion Act? Do we need to pay tax on that or de­clare the amount as part of his in­come tax re­turn? — Samir Pathak

Com­pul­sory ac­qui­si­tion by the gov­ern­ment is con­sid­ered as a trans­fer and you will need to pay cap­i­tal gains tax on the ba­sis of the amount paid by the gov­ern­ment. But if the as­set is agri­cul­tural land lo­cated at least 8 km away from an ur­ban cen­tre, it is not counted as a cap­i­tal as­set and no cap­i­tal gains tax is payable on it.

I plan to buy an apart­ment in Mum­bai for ` 1.8 crore. The to­tal cost of the unit in­clud­ing stamp duty, VAT, bro­ker­age, club mem- bership, de­vel­op­ment charges is

` 2.35 crore to ` 2.4 crore. I want to know if the bank will give a loan for the to­tal amount and not just the cost of the flat. I had bought a 1BHK ear­lier on a 15-year home loan and fore­closed it in 10 years.

— Swa­roop Nath

As­sum­ing you have suf­fi­cient in­come to jus­tify the amount of loan, you will be el­i­gi­ble for 75% of the agreed value of the prop­erty (ie 75% of

` 1.80 crore which is ` 1.35 crore). It is pos­si­ble that some banks may in­clude the club mem­ber­ship (if it is trans­fer­able to a new buyer) and de­vel­op­ment charges in the cost and hence you could be el­i­gi­ble for a larger loan. Since you are likely to have a good credit score (as you have pre­paid an ear­lier loan) and suf­fi­cient in­come to jus­tify a larger loan, you can con­sult a hous­ing fi­nance ex­pert to find an in­no­va­tive so­lu­tion to get you bet­ter loan el­i­gi­bil­ity. This could be a loan against an­other prop­erty or even an un­se­cured loan from the same lender.

My friend ap­plied for a home loan of ` 50 lakh to pur­chase a newly built-up flat with a hous­ing fi­nance com­pany in Howrah, West Ben­gal. All the pro­cesses are al­most com­plete and he has re­ceived loan ap­proval through an SMS. The lender has asked him to find a guar­an­tor on his be­half. Is it manda­tory? Is there any statu­tory guide­line/rule from the RBI or any con­cerned author­ity on the same?

— Dipesh Goel

Life in­sur­ance is not manda­tory as per guide­lines from Na­tional Hous­ing Board. How­ever, it is in your own in­ter­est to take a term in­sur­ance to en­sure that your fam­ily in­her­its the prop­erty and not the home loan in the event of your death dur­ing the loan term. You can buy a sin­gle premium term in­sur­ance pol­icy from any in­surer (not nec­es­sar­ily LIC) for the loan ten­ure. How­ever, if you buy it from LIC it is pos­si­ble that LIC hous­ing fi­nance may lend you the money for the one time premium and re­cover it in easy EMIs with the home loan.

So though the term in­sur­ance pol­icy from LIC may be ex­pen­sive it may be more con­ve­nient and easy to pay for. Just make sure that you buy a term in­sur­ance pol­icy and not an in­vest­ment cum in­sur­ance pol­icy.

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