personal loan to home loan

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Ramesh (Querist)
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03 December 2016 Hi sir I purchased a 10 years old house with My personal loan, for repair some more amount is required, is it possible to convert personal loan to home loan ( I heard that I will get more amount) because I am salaried person. so that I get more tax benefit.

Unnikrishnan B

Unnikrishnan B (Expert)
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03 December 2016 It is not a wise decision that you took a personal loan with Hugh interest rate and purchased a house .in my opinion you take loan for the repairs and maintenance .you take necessary steps to repay the personal loan

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Unnikrishnan B

Unnikrishnan B (Expert)
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03 December 2016 For repairs and maintenance you get deduction uoto Rs 30000/- year

Ramesh

Ramesh (Querist)
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03 December 2016 dear sir I purchased house in e auction by ARCIL Ltd at that time I need to pay total amount after the auction. so I took personal loan to pay ( at that time I unable to get home loan) . but with personal loan I will not get tax benefit. so if it's possible to convert personal loan to home loan I will get tax benefit.

Unnikrishnan B

Unnikrishnan B (Expert)
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04 December 2016 In my opinion banks will takeover the housing loan of other FI .so if you have taken loan for the purchase of the house you can ask the present FI to give CSI as quoting the purpose as purchase of house and if the present bank give the credit sanction intimation as the purpose as purchase of house then it is housing loan for you.if you have proof that the entire loan is given directly to the seller of the house property then you have the proof of end use of funds
With this documents you can treat it as housing loan.you can take the letter from the Financial institution in this regard.
This is personal opinion take your own decision

CA Suresh Jain

CA Suresh Jain (Expert)
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04 December 2016 @ Ramesh. Are you claiming deduction on account interest paid and repayment of loan ?

ALKESH T MEHTA

ALKESH T MEHTA (Expert)
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27 January 2017 You may approach same banker for conversion of personal loan to home loan & then you may take tax benefit for principal & interest.Hurry up to take tax benefit of this financial year.

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