Dear All,
I have two houses:
House 1: Purchased in August 2006 on my name, where we are currently residing.
House 2: Purchased in June 2010, on my mother's and my name
I am now planning to sell both flats and purchase a new house (House 3). The possession of House 3 is in Dec 2014.
I am planning to sell House 2 after June 2013. For paying for the construction of House 3, I am planning to take a loan for the balance amount (House 3 purchase cost - House 2 sale cost).
After I get the possession of House 3, I wish to sell off House 1 and pay off the loan.
I want to understand the following points from taxation point of view:
1. House 2 is in my mother and my joint name. If I take House 3 on my name only (for loan purposes), can I invest the sale money of House 2 in House 3? Would there be any issues because of the join ownership?
2. After selling off House 1, can I use it for loan repayment in Dec 2014?
3. Any other points / procedures which I need to consider.
Please let me know.
Thanks,
Vinod
CAclubindia
