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.