HT Estates - - HTESTATES - Harsh Roongta

I have booked a flat in NCR and will get pos­ses­sion by the end of this year.My bank has started home loan in­stall­ments. Can I claim this amount of EMI­for my in­come tax re­bate for the cur­rent fi­nan­cial year 2014-15?

—Jy­oti Ras­togi As far as tax de­duc­tion is con­cerned the le­gal po­si­tion is clear – the tax de­duc­tion be­comes avail­able only from the fi­nan­cial year in which the con­struc­tion is com­pleted (in your case the fi­nan­cial year end­ing March 31, 2016). As­sum­ing the pos­ses­sion of the flat is given in the last quar­ter of year 2015 the an­swers are as fol­lows:

Ag­gre­gate of all the in­ter­est payable till March 31, 2015, will be avail­able to you as a de­duc­tion in five equal in­stall­ments be­gin­ning from the fi­nan­cial year end­ing March 31, 2016, ie one-fifth of the ag­gre­gate in­ter­est will be avail­able be­gin­ning from the year in which you take pos­ses­sion of the prop­erty. This de­duc­tion along with the in­ter­est payable for the fi­nan­cial year will be sub­ject to a limit of R2 lakh if the prop­erty is self-oc­cu­pied.

Any prin­ci­pal por­tion of the loan re­paid till March 31, 2015, ie the year prior to the one in which you get the pos­ses­sion will not be el­i­gi­ble for any de­duc­tion and the tax ben­e­fit in re­spect of this is lost for­ever.

I have pur­chased a DDA flat in Delhi in which my brother is co-owner. We each have 50% share. The hous­ing loan taken for pur­chase of this prop­erty is also in the joint names of my­self and my brother. Ini­tially we both pay 50% each of EMI for hous­ing loan. But now it is only me who is pay­ing EMI. Now I want to get the flat trans­ferred in my name as per our mu­tual un­der­stand­ing. What are the steps we need to take or pro­ce­dures need to be fol­lowed for le­gal trans­fer of the flat only in my name. As hous­ing loan is still there. How to in­volve bank in this. Please sug­gest.

—T R Rakesh Any change in own­er­ship can only be done with the con­sent of the bank and at its sole dis­cre­tion, You will have to pay the stamp duty and reg­is­tra­tion charges on the ba­sis of value of the prop­erty as on to­day.

Your brother will have to ex­e­cute sale deed or gift deed in your favour. Even if the prop­erty is shown as gifted, the doc­u­ments will need to be stamped and reg­is­tered. Var­i­ous states have lower stamp duty rates for the gifts made to spe­cific rel­a­tives and you can take ad­van­tage of the re­lax­ation of charges if ap­pli­ca­ble to you.

You should sub­mit a fresh loan ap­pli­ca­tion and re­quest the bank to trans­fer the out­stand­ing loan amount to your new lac­count to fore­close the ex­ist­ing home loan. How­ever, this is only pos­si­ble if your in­come is suf­fi­cient enough to ser­vice the out­stand­ing loan amount and if have a good re­pay­ment track record.

Where DDA is con­cerned, I would sug­gest that you visit the DDA web­site which pro­vides all in­for­ma­tion and for­mats of af­fi­davits and in­dem­nity bonds re­quired to delete the name as co-reg­is­trant from reg­is­tra­tion.

Please let me know if loans on con­struc­tion-linked ba­sis are eligi- ble for in­come tax re­bates?

—Vanita Mehra In re­spect of in­ter­est and re­pay­ment of home loans un­der-con­struc­tion prop­erty, you can get tax ben­e­fits only from the fi­nan­cial year in which the con­struc­tion is com­pleted. For the in­ter­est paid dur­ing the con­struc­tion pe­riod, you can claim the to­tal in­ter­est paid dur­ing the con­struc­tion pe­riod in five equal in­stall­ments be­gin­ning from the year in which the con­struc­tion is com­pleted. This claim of in­ter­est will be within the over­all limit of ₹ 2 lakh in case the prop­erty is self-oc­cu­pied.

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