HT Estates - - HTESTATES - Harsh Roongta

I had bought a 2BHK flat along­with my wife which we re­cently sold for ₹ 33 lakh. Do we need to show the full amount of ₹ 33 lakh in our in­come tax re­turns or only

₹ 16.5? Also which ITR form will be used for this pur­pose? What should I do? Please ad­vise.

- Ashish Chaud­hary If you have sold the flat for an amount that is higher than the cost paid for it by you, you will have to pay cap­i­tal gains tax on the dif- fer­ence.

If the flat has been held for more than three years be­fore its sale, then the cap­i­tal gains tax will be treated as long term cap­i­tal gains.

Long term cap­i­tal gains is taxed at a lower tax rate (20.60%) and you can also claim ex­emp­tion under var­i­ous pro­vi­sions.

Each of you will have to pay cap­i­tal gains tax based on your share of ownership

I want to buy a house from a per­son who has taken a home loan from the same bank as mine. Can the seller fore­close the loan be­fore the sale or trans­fer it to me at an ap­pli­ca­ble rate?

- Kailash Chaturvedi There is no such thing as a trans­fer of a loan. The pre­vi­ous owner will have to fore­close the loan that he has taken and you will be given a fresh loan. Since the bank is the same, the process is likely to be eas­ier.

Can I take a home loan from a rel­a­tive? What tax ex­emp­tions will be avail­able to me if I do so? Also, which doc­u­ments will I be re­quired to sub­mit for the pur­pose? Is it a com­pli­cated process?

- Roshan Mit­tal You can take a home loan from your rel­a­tive and claim tax de­duc­tion ben­e­fits for in­ter­est payable on the loan up to ₹ 1.5 lakh only. No de­duc­tion is avail­able for prin­ci­pal pay­ment under Section 80 C.

If re­quired dur­ing the as­sess­ment pro­ceed­ings, you will need to pro­vide proof that the loan was given by the rel­a­tive and used for the pur­pose of ac­quir­ing the house prop­erty. You will also need a cer­tifi­cate from your

Are there any banks which give a mora­to­rium pe­riod or an op­tion such that the EMI starts after a year of the loan dis­burse­ment.

- Gee­tam Shah To the best of our knowl­edge, there isn’t any bank that pro­vides mora­to­rium for home loans. Most len­ders of­fer con­struc­tion linked loan plans wherein you pay the sim­ple in­ter­est for the pe­riod of con­struc­tion (also known as pre-EMI in­ter­est) and the EMI starts after com­ple­tion of con­struc­tion.

Len­ders are usu­ally dis­cern­ing about which under con­struc­tion projects they will fund. So make sure that the pro­ject you se­lect is ap­proved by the lender of your choice. How­ever, there are some builders that of­fer schemes where they bear the pre-EMI in­ter­est amount dur­ing the con­struc­tion pe­riod.

This is a sep­a­rate ar­range­ment be­tween you and the builder and if the builder doesn’t pay the pre-EMI in­ter­est to the bank, you will end up pay­ing the same to the bank.

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