HT Estates - - HTESTATES - Harsh Roongta

Both me and my hus­band are salaried em­ploy­ees. If we take a joint loan and buy an apart­ment as coown­ers, does it mean that both of us can avail tax ben­e­fit of ₹ 1.5 lakh against the prin­ci­pal and ₹ 2 lakh against in­ter­est? And that the com­bined ben­e­fit will be around

₹ 7 lakh? Also, if it is a self-oc­cu­pied prop­erty, am I al­lowed to pay rent for an­other prop­erty in the same city? Can I claim home loan tax ben­e­fits for a self-oc­cu­pied prop­erty and HRA for a rented prop­erty?

- Rekha Shah Yes, you can. If you and your hus­band are own­ers or coown­ers of the prop­erty you can get tax ben­e­fits for home loan re­pay­ment as well as for in­ter­est pay­ment as per your share in the loan. Tax ben­e­fits will also be avail­able for each of you sep­a­rately under Section 24 (in­ter­est payable on the loan) lim­ited to ₹ 2 lakh each if the prop­erty is self- oc­cu­pied and under Section 80C to an ex­tent of

₹ 1.5 lakh (for the prin­ci­pal re­paid) as per the ra­tio of the loan. You can claim ex­emp­tion for HRA for ac­tual rent paid in a rented house not be­long­ing to you. Which city the rented house is in will not make any dif­fer­ence to claim the ex­emp­tion. What is im­por­tant is that you should be able to prove that you are ac­tu­ally pay­ing rent for the house that does not be­long to you.

I have taken a loan of ₹ 8 lakh from a bank for 15 years. What are the pre­pay­ment charges? Can I re­pay it in less than 15 years?

- San­jay Jha You can go ahead and re­pay your home loan. There are no pre­pay­ment charges if the home loan is a float­ing rate home loan.

I have taken a home loan worth

₹ 50 lakh from a bank. The in­ter­est charged is higher than the pre­vail­ing rate. Should I take a loan from a bank that is of­fer­ing the home loan at a lower rate?

-San­jeet Sri­vas­tava Yes, you will be able to do that if you have main­tained a good track record with your ex­ist­ing lender. Try and check with your lender whether they can of­fer you a lower rate on pay­ment of a fee of around 0.29% of the prin­ci­pal loan out­stand­ing. That may be more ex­pen­sive than shift­ing your loan but

What is the dif­fer­ence be­tween get­ting a loan from a hous­ing finance com­pany and bank at the same rate of in­ter­est? Will my float­ing rate de­pend upon RBI guide­lines? What is bet­ter - a bank or a hous­ing finance com­pany?

-Sid­dharth Guha If the ap­pli­ca­ble rate of in­ter­est is the same, then the fu­ture move­ment of the float­ing rate will be an im­por­tant con­sid­er­a­tion in de­cid­ing the lender. The banks fol­low RBI guide­lines and the hous­ing finance com­pa­nies are re­quired to fol­low Na­tional Hous­ing Bank (NHB) guide­lines. Be­tween the two, RBI guide­lines are clearly more trans­par­ent and hence other things re­main­ing the same, a bank as a lender is prefer­able to a hous­ing finance com­pany.


No pre­pay­ment charge is ap­pli­ca­ble to a float­ing rate home loan

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