Housing Loan
This query is : Open
03 February 2010
The Land is purchased in my mother's name 4 years back. Now i want to construct the house. I am taking housing loan for it.
My question is can i take the tax deduction under section 80C for repayment of principal amount and also for interest payment under section 24?
And if not, Can anyway suggest the best possible way to claim deduction under 80C in terms of cost and convinience?
My question is can i take the tax deduction under section 80C for repayment of principal amount and also for interest payment under section 24?
And if not, Can anyway suggest the best possible way to claim deduction under 80C in terms of cost and convinience?
03 February 2010
property must be in your name. then only you can claim it.
03 February 2010
Thanks for the reply dear.. Can u suggest me any possible way by which i can claim the deduction.
03 February 2010
I mean if i transfer the property what r the implications? i mean what r expenses i have to make like transfer duty, etc and other muncipal registration fee for change of name?
and shall i register the property in my name before i construct the house or after the house gets constructed?
and also wanted to know whether my mom would be taxed if she transfers the property in my name?
and shall i register the property in my name before i construct the house or after the house gets constructed?
and also wanted to know whether my mom would be taxed if she transfers the property in my name?
03 February 2010
80C and interest u/s 24 deduction is available if property is even in joint name. So you can make property in joint name then its OK.
otherwise you can purchase it from your mother transfer, registry cost will be added in your cost.
For bank you should ask them beacuase if land registry is in your mother name and there is a sale deed between you and your mom then bank can allow loan on it to you.
it is before 4 year so long term capital asset tax will be applicable but indexing will also be available. calculate and get house on index cost to save tax
otherwise you can purchase it from your mother transfer, registry cost will be added in your cost.
For bank you should ask them beacuase if land registry is in your mother name and there is a sale deed between you and your mom then bank can allow loan on it to you.
it is before 4 year so long term capital asset tax will be applicable but indexing will also be available. calculate and get house on index cost to save tax
03 February 2010
good explaination by ca prashant gupta i agree with him.
03 February 2010
You should execute an agreement with your mother whereby you become a co-owner of the prperty in the ratio and proportion of your investment through bank loan or otherwise. Such agreement may be registered and submitted to the bank. Also, mutation may be got done with civil authorities. After, getting these done you may claim the deductions u/s 80C and 24.
This alternative will definitely help you in saving of Stamp Duty which will be payable in case land is transferred.
This alternative will definitely help you in saving of Stamp Duty which will be payable in case land is transferred.
03 February 2010
Dear Ramesh,
Thanks for your reply.
Can u throw some light on co-ownership? How can i become co-owner?
What documents do i need to execute?
and also do i need to get my name changed in muncipal records if i become the co-owner or i have to get my name enrolled ?
Thanks for your reply.
Can u throw some light on co-ownership? How can i become co-owner?
What documents do i need to execute?
and also do i need to get my name changed in muncipal records if i become the co-owner or i have to get my name enrolled ?
03 February 2010
First you should get an Agreement executed in this regard that 'Son' will invest funds in construction of a building on the plot owned by 'mother' and , as such, will become a co-owner in the house property with ...% share in land and building. please work out the ratio of the investments by the two. Get this agreement registered.
Afterwards, apply for the change in name with Municipality. In case the Municipal people do not entertain such agreement for the purpose of mutation then get a suit for decleration filed in the court which will then be decreed and as such acceptable by municipilaty people.
Suit for decleration does not involve much cost and effort.
Afterwards, apply for the change in name with Municipality. In case the Municipal people do not entertain such agreement for the purpose of mutation then get a suit for decleration filed in the court which will then be decreed and as such acceptable by municipilaty people.
Suit for decleration does not involve much cost and effort.
03 February 2010
Thanks Dear.
Dear Ramesh, i have one plan. what r the implications if i do this please let me know.
My mom will gift the land to me. i will execute the gift deed. i neednot pay transfer duty. there is only stamp duty and registration fee.
Then will take the loan in my name and will claim income tax ded u/s. 80c and 24
If i go through this route i will be paying very less stamp duty.
Dear Ramesh, i have one plan. what r the implications if i do this please let me know.
My mom will gift the land to me. i will execute the gift deed. i neednot pay transfer duty. there is only stamp duty and registration fee.
Then will take the loan in my name and will claim income tax ded u/s. 80c and 24
If i go through this route i will be paying very less stamp duty.
03 February 2010
Thanks Dear.
Dear Ramesh, i have one plan. what r the implications if i do this please let me know.
My mom will gift the land to me. i will execute the gift deed. i neednot pay transfer duty. there is only stamp duty and registration fee.
Then will take the loan in my name and will claim income tax ded u/s. 80c and 24
If i go through this route i will be paying very less stamp duty.
Dear Ramesh, i have one plan. what r the implications if i do this please let me know.
My mom will gift the land to me. i will execute the gift deed. i neednot pay transfer duty. there is only stamp duty and registration fee.
Then will take the loan in my name and will claim income tax ded u/s. 80c and 24
If i go through this route i will be paying very less stamp duty.
03 February 2010
Yes, the plan can be acted upon if the stamp duty cost is reasonable.
I do not percieve any other problem in this plan.
I do not percieve any other problem in this plan.
03 February 2010
Thanks Dear,
Actually if i execute gift deed, only 1% stamp duty i have to pay. and if i execute sale deed i will end up paying 10%.
Anyways thanks dear
i have applied for muncipal permission in my mother's name. and the construction contract has to be given.
Since i already submitted documents to muncipal authorities, what iam planning to do is , i will contruct the house first and after construction will execute the gift deed. now the house will be in my name and i will be paying the EMI. i can claim Deduction.
Actually if i execute gift deed, only 1% stamp duty i have to pay. and if i execute sale deed i will end up paying 10%.
Anyways thanks dear
i have applied for muncipal permission in my mother's name. and the construction contract has to be given.
Since i already submitted documents to muncipal authorities, what iam planning to do is , i will contruct the house first and after construction will execute the gift deed. now the house will be in my name and i will be paying the EMI. i can claim Deduction.
03 February 2010
Thanks Dear,
Actually if i execute gift deed, only 1% stamp duty i have to pay. and if i execute sale deed i will end up paying 10%.
Anyways thanks dear
i have applied for muncipal permission in my mother's name. and the construction contract has to be given.
Since i already submitted documents to muncipal authorities, what iam planning to do is , i will contruct the house first and after construction will execute the gift deed. now the house will be in my name and i will be paying the EMI. i can claim Deduction.
Actually if i execute gift deed, only 1% stamp duty i have to pay. and if i execute sale deed i will end up paying 10%.
Anyways thanks dear
i have applied for muncipal permission in my mother's name. and the construction contract has to be given.
Since i already submitted documents to muncipal authorities, what iam planning to do is , i will contruct the house first and after construction will execute the gift deed. now the house will be in my name and i will be paying the EMI. i can claim Deduction.
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