We are four brothers and sisters (all married). My father had a house in his name in Delhi. I have sold that house and with that amount I have purchased another house in Mumbai within a month. Please advise me as to whether it violates any property law and whether it involves any tax implications? - Shikhar Mukherjee There is no violation of any property law unless you have sold the inherited property without legal authorisation from other legal heirs. There would be capital gains tax payable by you and the other heirs on their individ- ual shares in the inherited property.
If the cost of your new house is more than the longterm capital gains, there are no tax implications for you. If one sells the property for ` 75 lakh and the long-term capital gain tax is around ` 10 lakh, (1) Is it ` 10 lakh (ie capital gain tax amount) that has to be put in capital gain bonds and remaining ` 65 lakh can be utilised to repay loan or reinvest in another property; or
(2) The entire ` 75 lakh has to be put in capital gain bonds or reinvested?
- Manik Sharma You need to invest ` 10 lakh in capital gain bonds within six months of the transfer date. I have taken a home loan of ` 15 lakh from a national bank. Along with the loan the bank told me it was mandatory to go for both its life insurance and general insurance schemes. Please tell me if these covers are mandatory. Additionally, I want to bring down the interest rate according to the latest RBI guidelines. However, my bank is reluctant to do so, saying they are yet to get a circular from the RBI. What is the procedure to bring down my home loan rate?
- Robin Sagar Banks cannot mandatorily tag their insurance offerings along with loans. This is specifically prohibited by regulation.
But banks can make the cover itself mandatory, in which case you will need to take these policies independently from the market. In the market, better and cheaper insurance policies are available even from several national banks.
If you want to reduce your rate, just shift the loan to another lender. That will ensure you get the latest interest rate on your loan. The author is a chartered accountant and a Sebi registered investment adviser