CHEQUE BOOK

HT Estates - - HTESTATES - Harsh Roongta

I have taken a home loan with my wife as the main ap­pli­cant and my­self as the co-ap­pli­cant. I have reg­is­tered the apart­ment under my name. About 80% of the loan amount has been re­leased by the bank to the builder. I came to know that since the prop­erty is not reg­is­tered under her name, she can­not claim tax ben­e­fits. What should I do to make her the co-owner with 50% share in the flat? Do I need to go for re-reg­is­tra­tion? Reg­is­tra­tion cost me ₹ 1.5 lakh. I have read about trans­fer deeds, gift deeds, will deeds etc (Will gift­ing 50% prop­erty to my wife solve my con­cern or do I need to sell 50% of prop­erty to my wife?)

—Ra­man Khanna You will need your lender’s ap­proval for gift­ing 50% of the prop­erty to your wife, or sell­ing 50% of the prop­erty in her name. This is a must to en­able her to avail tax de­duc­tion ben­e­fits. Whether you gift or sell a part of the prop­erty, it will have stamp duty im­pli­ca­tions though the stamp duty on a gift will be lower. In any case, if you gift the prop­erty it will not serve any ben­e­fit under the IT Act as the in­come from the as­set gifted to the spouse will be clubbed with your in­come. The ap­proval from the bank for sale of 50% share to your wife should not pose a prob­lem, as she is a co-ap­pli­cant to the home loan.

What are the pros and cons of down pay­ment vs con­struc­tion­linked pay­ment op­tion for any under-con­struc­tion prop­erty?

—Tanuj Goel It is al­ways ad­vis­able to go for con­struc­tion-linked plan for a prop­erty to en­sure that your ex­po­sure is in pro­por­tion to the stage of com­ple­tion of the prop­erty. Whether you get a one-time dis­bursed loan or a con­struc­tion-linked plan, you will not be able to claim tax de­duc­tion ben­e­fits ei­ther on the pre-EMI in­ter­est or the in­ter­est and prin­ci­pal el­e­ment of the EMI till the fi­nan­cial year in which the con­struc­tion is com­pleted. The dis­count avail­able in a full down pay­ment plan will very rarely jus­tify the sig­nif­i­cant ad­di­tional risk of pro­ject de­lay that you take. If pay­ing EMI is your con­cern, most banks would be happy to start off your EMI on each dis­burse­ment with the EMI be­ing suitably ad­justed after ev­ery dis­burse­ment. This will help you save on preEMI in­ter­est.

I have taken a home loan to pur­chase a prop­erty which is in my name but my brother pays the EMI. He now wants the prop­erty in his name. How can I in­clude his name?

— Dhanan­jay Ma­lik We as­sume that your brother is not a co-bor­rower to the home loan and that he is in­for­mally pay­ing your loan EMI. You can trans­fer the house in your brother’s name with the bank’s con­sent through a sale deed on which you will have to pay stamp duty and reg­is­tra­tion charges.

Your brother can ap­ply for a fresh loan and can get the same on the ba­sis of his in­come and past re­pay­ment his­tory. How­ever, he will have to pay a pro­cess­ing fee to take a new loan.

Also, since the trans­ac­tion is be­tween two re­lated par­ties, the bank will be extra cau­tious while grant­ing your brother the loan and may sub­ject the prop­erty to rigid val­u­a­tion norms.

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