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 firstname.lastname@example.org