Income tax - housing loan

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sathishcbe

Others

33 Points Posted on 28 October 2015

Dear sir, I availed a housing loan from canara bank and constructed a house in my mothers property.I am paying the FULL EMI.(Me and my mother - co borrower in Loan) I am not the co-owner of the property. Now I am not able to claim the income tax. My question is 1) If I transfer the property to my name from my mother through settlement deed. Can I get the tax benefit? 2) I contacted a lawyer. he says that after transferring the property to my name. i have to mortgage the property again with the bank. but the property is already in mortgage with the bank. Can I avoid the remortgage because it will cost more money? Looking forward for your reply. Thanks, Sathish

Replies (4)

S. Shiroor

Others

1321 Points Posted on 28 October 2015

Prepare a Gift Deed. Your mother can gift 50% of the share to you. Inform the Bank though.

sathishcbe

Others

33 Points Posted on 28 October 2015

Thank you for the reply sir. I informed the bank already. The bank lawyer says I have to go for re mortgage.(bank will give it to my mother and she will give it to me and I will mortgage it to bank )

Is this really required? My mother is ready to transfer the whole property to me since I agreed to give my another plot to my brother.

Please suggest if i can avoid this re-mortgage process and how? can we do gift deed or settlement deed registration when the deed is in mortgage?

Thank you,

Sathish

S. Shiroor

Others

1321 Points Posted on 28 October 2015

if there is a change in ownership - remortgage is a legal necessity. All legal owners should agree to mortgage.

You want to claim Housing loan benefits in IT.

There is no other option . Your mother should gift 50% of her share to you. You both become co-owners and mortagage . Before she gifts the 50% she should take permission from bank bcoz the house is under mortgage.

Karthik.V.Kulkarni

Chartered Accountant

766 Points Posted on 29 October 2015

Hi, if your mother had only land and you constructed house then apply to ao and make it a benami transaction, you can claim deduction and income from house property will be taxed in your hands or else in any other case there has to transfer deed.