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.