HT Estates - - HTESTATES - Harsh Roongta

Is it nec­es­sary to give the bank de­tails of the source of pay­ment if one needs to pre-close a loan?

— Abi­nav Kapoor If your loan is on float­ing rate, lenders can­not levy any pre­pay­ment penalty ir­re­spec­tive of source of fund­ing, hence the source of fund­ing is ir­rel­e­vant.

How­ever, if your loan is un­der a fixed rate from a bank and your lender has a clause that al­lows for nil pre­pay­ment penalty only if you pre­pay from your own sources, then in such a case, you will need to dis­close the source of pre­pay­ment.

If such a fixed rate loan is from a hous­ing fi­nance com­pany (HFC) as dis­tinct from a bank, then you need to prove that the loan is not be­ing pre­paid by trans­fer­ring it to an­other lender and in that event the HFC can­not charge you any pre­pay­ment penalty. Nor­mally, if you are pre­pay­ing the loan with a cheque drawn on your own ac­count (or dif­fer­ent from pre­pay­ing through de­mand draft/pay or­der) that by it­self should be enough proof that the pre­pay­ment is from your side, ie, own source.

My an­nual in­come is ` 5.25 lakh and the monthly take home is

` 43,750. My em­ployer pays me 25% salary by cheque that goes into the bank ac­count and 75% in cash. Three banks have re­jected my home loan ap­pli­ca­tion. I need a home loan of ` 17 lakh. Which bank can help me?

—San­tosh Ku­mar Salary paid in cash can­not be proved and hence it will be dif­fi­cult for any lender to take this amount into ac­count while de­ter­min­ing your el­i­gi­bil­ity. Banks will not be able to pro­vide a home loan to you based on the salary re­ceived by cheque. Some lenders may, and do take into ac­count some cash in­come if it can be proved in sur­ro­gate way. How­ever, the sheer quan­tum of your cash in­come will be dif­fi­cult to prove even for such lenders. You can try a lo­cal co-op­er­a­tive bank that may con­duct a de­tailed ver­i­fi­ca­tion of your em­ploy­ment sta­tus, though I’m not sure if they can dis­burse the quan­tum of loan that you are look­ing at.

I bought a prop­erty in Kolkata in De­cem­ber 2011 for ` 27 lakh. I in­vested ` 8 lakh for im­prove­ments and in­te­rior dec­o­ra­tion. My to­tal in­vest­ment in the house is ` 35 lakh. I want to sell the prop­erty and rein­vest the amount in an­other prop­erty in Mum­bai due to job trans­fer. Should I wait till De­cem­ber 2014 to ben­e­fit from the long-term cap­i­tal gains tax?

—Anand Shankar A bor­rower can get tax de­duc­tion ben­e­fit on home loan for un­der-con­struc­tion prop­erty only from the fi­nan­cial year in which the con­struc­tion of the house is com­pleted ir­re­spec­tive of whether it is pre-EMI or EMI on part pay­ment. The in­ter­est paid dur­ing the pe­riod prior to the year of com­ple­tion of con­struc­tion will be al­lowed in five equal in­stall­ments be­gin­ning from the year in which the con­struc­tion is com­pleted and pos­ses­sion taken. Any re­pay­ment of prin­ci­pal dur­ing the years when the prop­erty re­mains un­der­con­struc­tion is lost for­ever. Se­condly, when a per­son owns more than one prop­erty and both are ei­ther oc­cu­pied by self or his rel­a­tives, the per­son has to treat one of the prop­er­ties as self oc­cu­pied. If the per­son opts for one prop­erty as self oc­cu­pied, the other prop­erty will be deemed to have been let out and a no­tional in­come equiv­a­lent to the rent ex­pected to be re­alised on such prop­erty will be treated as rental in­come.

Harsh Roongta is CEO, Apna Paisa.He can be reached at ceo@ap­na­

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