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Hindustan Times (Chandigarh) - Estates - - ESTATES - HARSH ROONGTA

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

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