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What is work order in home loan??

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Sudheer

software engineer

23 Points Posted on 09 October 2023

Hi, My name is Sai 27 years old software engineer. As a part of achieving my dream to own a property I've planned to purchase it before 30 and fortunately my home loan got approved and registered property which is under construction. But as a part of home loan builder included a work order in the agreement in which they ask some other person account details to credit the work order loan and I gave my friend details which will finally be transferred to builder account. So, is there any taxation my friend would face as I'm unware of this part. Please help me. Thanks

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Quick Summary

This discussion addresses a common query about 'work orders' within home loan agreements. The user, Sai, has a home loan approved for a property under construction. A 'work order' clause in the agreement requires crediting a portion of the loan to another person's account before it reaches the builder. Sai has provided his friend's account details for this purpose and is concerned about potential tax implications for his friend. The thread aims to clarify what a work order is in this context and explain any tax liabilities that may arise.