HT Estates - - HTESTATES - Harsh Roongta

I took a loan from a bank ini­tially, sold the prop­erty and re­paid the loan. I bought new house and took an­other loan from a dif­fer­ent bank. Can I claim tax ben­e­fits on both the loans?

- Gau­rav Pant This ques­tion is rel­e­vant for the year in which the first loan was paid off and the se­cond one taken. When it comes to the loan taken for the house sold: The in­ter­est por­tion will be de­ductible from the rental in­come for the year. If both the first and the se­cond prop­er­ties are be­ing used for self -oc­cu­pa­tion then the sit­u­a­tion is a lit­tle com­pli­cated. You will have to treat only one of the prop­er­ties as self-oc­cu­pied and the in­ter­est payable for the year for that prop­erty will be lim­ited to R2 lakh pa. The other prop­erty would be deemed to have been rented out and the com­plete in­ter­est payable on that loan would be de­ductible from such deemed rental in­come. Prin­ci­pal pay­ment (as­sum­ing that the house prop­erty had been held for five years at least) than the prin­ci­pal pay­ment on both loan will be el­i­gi­ble for de­duc­tion un­der Sec.80C. If the house sold was held for less than five years then no de­duc­tion would be al­lowed for the prin­ci­pal por­tion of any home loan in that year and any de­duc­tion for prin­ci­pal por­tion claimed in the years be­fore would also be tax­able as in­come in this year. My father has a plot on which I want to con­struct a house. What do I have to do if I want to take a home loan? Which is the best one for tax de­duc­tion: get­ting a gift deed from my father or mak­ing a sale deed be­tween us?

- Astha Gupta Since you are not the owner of the land you will not be able to avail of the tax ben­e­fits for in­ter­est pay­ments and for loan re­pay­ment. To be­come an owner or a co-owner you will need to ac­quire own­er­ship rights ei­ther as a donee (re­ceiver of a gift) or as a pur­chaser. It may be a bet­ter idea to get it as a gift as that might help you save on the stamp duty payable on the trans­fer doc­u­ment.

I want to sell my apart­ment and buy a new one. I have home loan from a bank of about ₹ 3 lakh. Can this loan be trans­ferred to the new apart­ment that I buy?

- M Mad­husud­han There is no such thing as trans­fer­ring a home loan. You will have to fore­close the loan on your ex­ist­ing prop­erty if you want to sell it. You can get a home loan for your new prop­erty based on your in­come and credit his­tory. There will be no pre­pay­ment charges on the loan that is paid off it is a float­ing rate loan. A small pro­cess­ing fee might have to be paid on the new loan. At the time of de­ter­min­ing the loan amount for buy­ing a house, do banks in­clude other ex­penses like reg­is­tra­tion charges, elec­tric­ity con­nec­tion fees etc?

- Piyali Kavi­raj Banks can con­sider only the value as men­tioned in the agree­ment and fund (max­i­mum) up to 80% of such value as a home loan(ex­cept for pri­or­ity sec­tor home loan. About 20% of the agree­ment value plus stamp duty and reg­is­tra­tion charges etc have to be paid for by the buyer from his own sources.

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