I availed a housing loan from canara bank and constructed a house in my mothers property.I am paying the FULL EMI. I am not the co-owner of the property. Now I am not able to claim the income tax. My question is
1) If I transfer the property to my name from my mother through settlement deed. Can I get the tax benefit?
2) I contacted a lawyer. he says that after transferring the property to my name. i have to mortgage the property again with the bank. but the property is already in mortgage with the bank. Can I avoid the remortgage because it will cost more money?
06 June 2015
I don't know about settlement deed. But, my suggestion is: 1. Ask your mother to execute a gift deed by giving 50% share in her property to you. 2. Pay the registration charges, in respect of such gift deed and register it. 3. File application to local municipal/ corporation as the case may be, to add your name as joint property owner. 4. Once, you added as joint owner, you can claim income tax benefit.
We had a discussion and my mother is ready to transfer the whole property(100%) to me through gift deed since I am ready to transfer my another property to my brother as a equal settlement.
The house constructed property is in Village panchayat and we are only 2 sons.
In this case Do I have to re-mortgage the property again with the bank?
If yes, the property is already in mortgage through my mother.
Why it is not sufficient, because I can't do anything with the property until we get the Loan clearance from the bank.
07 June 2015
No need to re-mortgage required. Once, you received the property through valid gift deed, submit a copy of deed with the lender bank. It will change the name of the borrower.
09 June 2015
One last question. The bank's lawyer currently says the bank has to withdraw the existing mortgage and allow my mother to transfer the property to my name. Then again I will have to mortgage the property with the bank. Is this process really required?
CAclubindia
