CHEQUE BOOK

HT Estates - - HTESTATES - Harsh Roongta

I have a hous­ing loan from a bank, the loan is taken by my son and I am guar­an­tor in this loan. Can I take re­verse mort­gage loan?

– Karthik Pu­nia If the self-oc­cu­pied prop­erty still has a loan out­stand­ing on it with Dena bank, you will not be able to get a re­verse mort­gage loan against it. It seems the house is owned by your son and not by you. Only a se­nior citizen who is owner of the house can take a re­verse mort­gage loan. If, how­ever, you have your own home on which there is no loan and where you are also stay­ing you can look for a re­verse mort­gage loan if you are a se­nior citizen. My wife has a plot of about 1000 sq ft in Ben­galuru. We in­tend to con­struct a house. Can I take a hous­ing loan and claim in­come tax ben­e­fit? I work in a MNC. One of the banks told me since I am a guar­an­tor, I will not be able to claim the in­come tax ben­e­fit.

– Di­vakar Soni Since your wife is the owner of the land, she will have to join you as a co-bor­rower for the con­struc­tion loan. If you want to avail tax ben­e­fits, You will also have to be the co-owner of the prop­erty. So un­less you be­come joint owner of the prop­erty, you will not be able to claim tax de­duc­tion ben­e­fit. In or­der to be­come a co-owner your wife can trans­fer some part of the land to you and thereby make you co-owner of the prop­erty. Both of you can get the tax ben­e­fits on home loan re­pay­ment as well as on in­ter­est pay­ment for the con­struc­tion loan in the ra­tio of

your share in the loan. We have an old home of 750 sq ft land. The prop­erty is in my fa­ther’s name. We are plan­ning to de­mol­ish and re­build. I will need hous­ing loan for this. I will be the loan re­quester and re-payer, since my fa­ther is re­tir­ing this Au­gust. Guide us on get­ting a home loan for this con­di­tion. What is the best op­tion and what doc­u­ments are re­quired?

– Ab­hi­lash Since your fa­ther is the owner of the house, he will need to be a co-ap­pli­cant for the loan along with you though the loan can be granted based on your in­come. The len­der will treat this as a self-con­struc­tion case, which means some lenders are un­likely to grant such loan. You can talk to the stan­dard lenders such as ICICI, HDFC Ltd. or any other len­der who pro­vides loans for self-con­struc­tion. You will need to pro­vide an ar­chi­tect or civil engi­neer’s cer­tifi­cate for the es­ti­mated cost and also the ap­proved plans. Since you are not the owner of the land (and hence au­to­mat­i­cally of the new build­ing that will be con­structed on that) you will not be el­i­gi­ble for any tax de­duc­tions on the loan re­pay­ments and in­ter­est in spite of pay­ing ev­ery­thing your­self.

The len­der will also like to get some doc­u­men­ta­tion done to en­sure for it­self that the prop­erty will pass on to you if your fa­ther ex­pires dur­ing the loan ten­ure.

It might be a bet­ter bet for you to get some form of own­er­ship right in the house both to pro­tect your own in­ter­ests as well as to be el­i­gi­ble for tax ben­e­fits on the loan taken to con­struct the new house.This can be done by way of ac­quir­ing some share in the land by way of a gift deed ex­e­cuted by your fa­ther in your favour or al­ter­na­tively you can pur­chase some share in the land from your fa­ther.

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