My wife and I have jointly applied for a flat at SuperTech Ecocity for a total value of R60 lakhs. The terms of pay- My wife and I are residing in Delhi and have taken two home loans separately. We are living together in a house which is in my name. I am claiming rebate under income tax towards interest and principal indicating that the house is self-occupied. Now, my wife has purchased a house in the same city and she has no other property in the city under her name. Kindly clarify whether my wife is eligible for similar tax rebates. Can she treat the house she purchased as self- occupied?
—Vishal Kothari Assuming that the house in the name of your wife is in a habitable condition and she actually uses it occasionally as a temporary residence, she can definitely claim a deduction for the interest payable on a loan taken to acquire such property. If the property is let out, then you can claim interest as deductible against the rental income from the property. ment are as follows: 40% on initial booking and the rest on possession (likely in June 2014). I have paid an amount of R24 lakhs in the last week of May 2013. The balance of R36 lakhs is to be paid on possession. How does the recent amendment relating to tax deduction at source (TDS) on transfer of immovable property, (which has become effective from June 1,2013) apply to us? Please clarify whether the next set of payments to the promoter should be an amount after deducting 1%. Where is this to be deposited and what certificate is to be taken? What about the TDS on the payments made in the May 2013?
— M Siddhart The TDS provisions will be applicable on all the payments made on or after June 1, 2013. For such payments, please deduct 1% TDS and pay it online through form 26 QB under the following link: https://onlineservices. tin.egov-nsdl.com/etaxnew/ PopServlet?rKey=-1382238246
Later, give a certificate of deduction 16B to the builder so that he can claim TDS deducted by you. I am interested in buying a row house in Charkop, Kandivali, developed by MHADA (Maharasthra Housing and Area Development Authority). The house was on lease by MHADA, but now it has been leased yet again. Can I get a home loan to buy this property?
— Harshvardhan If the MHADA house is older than 25 years, then you might face a problem. But, if the building is in good shape and will last the 20-year loan tenure, the lender will consider it on a case-to-case basis. The valuation of the property is done by the valuers appointed by the bank, based on which the amount to be financed for the property will be decided. If the valuation is lower than the agreement value, you will have to make good the shortfall in the valuation as well.