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.