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Income tax on home/home loans

200 views 2 replies

M

n/a

36 Points Posted on 08 September 2019

Current residential properties:-

1. House in which we live (gifted by parents)

2. Plot (un-build) gifted by parents

Now, my parents wish to give me 3rd residential plot (un-build) as gift

Questions:-

a) How will it effect my taxes (income tax and capital gains etc.) if I accept this gift?

b) If I decide to take this gift and take home loan to construct the plot , will I be able to claim TAX benefits of home loan?

c) I also have some FD's and savings account balance. Can interest paid on home loan be cancelled/deducted from interest gained from deposits (savings and FD) for purpose of Income tax?

Thank you all!

Replies (2)

Kapadia Pravin

17264 Points Posted on 08 September 2019

1. No impact on your taxes.
Gift by parents - no tax impact
2. Yes , you Will be able to take benefits of interest deduction under 24(2) after construction is completed. Further Accumulated interest upto completion of construction will be eligible for deduction @ 20% for next 5 years. Maximum interest deduction limit is 2 lakhs p.a

3. income from other sources that is FD int etc will be set off against income from house property (which will be negative in view of interest deduction)