02 September 2008
My father has purchased a plot of land which is registred in his name and he constructed a house by taking a loan from bank. Now i am paying the EMI (Principle + Interest) because my father does not have source of income and he is dependent on me. What should I do so that I can claim the deduction for EMI paid. Please advice.
03 September 2008
Can I Prepare a Sale deed of sale of house from my father to me showing that the consideration will be paid in instalments per month of RS 6000 and then pay it in instalments monthly.
25 January 2009
First alternative is not totally workable because no Sale Deed could be registered until and unless full sale consideration is paid and a confirmation to this effect is recorded in Sale Deed.
Alternative of Gift (including registration of gift deed), if made, BEFORE availing Bank Loan could have enabled you to claim Sec 24 and Sec 80C benefits. Registration of Gift Deed would have caused you substantial amount of Stamp Duty. You could have taken decision after weighing pros of cons of stamp duty and recurring IT benefits. However, I am afraid, this alternative could have been thought of before availing bank loan and not at this stage, that is, after availing bank loan
At this stage, you may perhaps think of one alternative, that is, sale of property by your father to you. But work out the economics carefully. If you are satisfied that payment of one-time stamp duty which may be about 9% of "market value" as fixed by the Registrations Department is worth it, discuss with Bank and any local CA to proceed further
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