CHEQUE BOOK

HT Estates - - HTESTATES - Harsh Roongta

I had taken a hous­ing loan from a bank. Can I ap­ply for ad­di­tional loan in the same bank? What will be the in­ter­est rate?

–Anub­hav Singla You will get an ad­di­tional loan from the same bank if your in­come and re­pay­ment track record jus­tify the loan. In­ter­est rates of­fered to home loan con­sumers is based on their in­come pro­file and loan re­quire­ment. Cur­rently, the bank you men- tion has no in­for­ma­tion on top up loans on its web­site. How­ever, if the ad­di­tional loan is for home im­prove­ment/ren­o­va­tion then it is avail­able from the bank at 12.15% pa, as on De­cem­ber 12, 2015. I have claimed de­duc­tion on home loan in­ter­est of ₹ 1.5 lakh for three years. Now I want to sell the property and pre-pay the loan. How will this im­pact the de­duc­tion claimed for three years? What do you rec­om­mend to min­imise tax bur­den in this sce­nario?

–Yo­gesh Tri­pathi There is no im­pact of the sale of property on the de­duc­tion claimed in pre­vi­ous years for in­ter­est payable on a home loan taken to ac­quire that property. This is ir­re­spec­tive of the pe­riod for which the property is held. Is de­duc­tion al­lowed on in­ter­est on loan taken for re­pay­ment of ear­lier loan?

–Shiv Kapoor Yes, sec­tion 24 al­lows the in­ter­est on the loan bor­rowed for the pur­pose of re­pay­ment of ear­lier loan. The pro­vi­son un­der sec­tion 24 clearly states that the ex­pres­sion new loan means the whole or any part of a loan taken by the as­sessee sub­se­quent to the cap­i­tal bor­rowed, for the pur­pose of re­pay­ment of such cap­i­tal. I am a salaried em­ployee with a self-oc­cu­pied house. I am avail­ing tax ben­e­fit out of loan for pur­chase of the house. Apart from this, can I show ex­penses such as ren­o­va­tion, paint­ing, fur­ni­ture, monthly main­te­nance etc, losses to­wards the property and deduct it from my in­come?

–Anand Bose For self-oc­cu­pied property the only de­duc­tion avail­able is in­ter­est payable on a loan taken to ac­quire, con­struct, re­new, re­pair or re­con­struct a property. None of the ex­penses paid by you are in that cat­e­gory and hence are not de­ductible. On De­ce­me­ber 31, 2013, I had taken a loan of ₹ 15 lakh from a rep­utable fi­nance com­pany in Delhi. On Oc­to­ber 19, 2015, I sent a writ­ten ap­pli­ca­tion for fore­clo­sure of the said loan. De­spite sev­eral re­minders the fi­nance com­pany hasn’t taken any ac­tion. What do I do about this?

–San­jay Malhotra Since you have al­ready re­quested for fore­clo­sure in writ­ing and have not re­ceived any re­sponse you can di­rectly file a com­plaint with the com­pany’s griev­ance of­fi­cer by email. Make sure you men­tion promi­nently in the com­plaint that you in­tend to take up the griev­ance with the of­fi­cer in charge of the re­gional of­fice of DNBS of RBI if the com­plaint/dis­pute is not re­dressed within a pe­riod of one month. If your com­plaint is jus­ti­fied you will see im­me­di­ate ac­tion in the mat­ter.

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