Hra - own house

Save Share

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)
Follow

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.

Message likes : 1 times

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)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now