Hra - own house

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2014 Dear Experts,

I have my own funds and funds of mother,My mother is receiving pension. I like to buy an apartment by using funds of mine and my mother. I do not like to go for house loan. Whose name I should register to avail HRA benefit? If I register on my mother name, I understand I can get HRA benefit and My mother would show that in her returns. what would be the legal implications of ownership of the apartment in future. I have three sisters. I am married person. Could you please suggest what is best solution for this?

Regards
Sudheer

Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 February 2014 Dear Sudheer,

to take a long-term view, better register in your own name. instead of making your mother co-owner, borrow money from her, pay interest to her and claim deduction on this interest.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2014 Thanks for suggestion. What documents to be submitted to the company to consider this.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 February 2014 well you need to draw a loan agreement between you and your mother mentioning the interest rate and payment terms. Thereafter the repayment including principal/interest should reflect in the bank statement.

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