Sir, I want to construct a house by taking loan from bank. At present owner is my father and construction permission is in his name only. But recently i have come to know that if i am not owner, i cannot claim tax benefit..so, my father is ready for gift deed in my name. Now, after gift deed can i use construction permission which is in my fathers name? or else i need to apply for fresh permission in my name? or else i can apply for change in name of owner in permission letter ? Is there any short cut ? Please advice..taking permission is lengthy process
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1) once gift deed is executed duly stamped and registered you would be absolute owner of the house
2) if you want to carry on any construction on said land you need permission from municipal corporation
3) you have to apply for permission to carry on construction in your name
4) consult a local architect
1. It appears the building plan is sanctioned in the name of your father.
2. If that is so you can carry out the constructions after the proeprty is transferred n your name.
3. So there is no need to apply for fresh building plan.
4. If you carry out the constructions on the basis of loan there would be no hindrance to claim tax benefit even if the plan is sanctioned in your father's name who was the previous owner of the proeprty.
Will bank give me loan on the basis of building permission which is in the name of my father?
1) bank will give you loan on basis that you are absolute owner of property as registered gift deed has been executed in your favour
First of all your father cannot transfer the property by executing a gift deed to your name as there subsists a mortgage loan on the property, a NOC to e obtained from the bank for this purpose.
The bank may obtain fresh guarantee for this and it may not transfer the loan to your name but it depends on the discretion of the bank manager.
You cannot transfer the property to your name or there is no short cut method to this
1.Bank will not give you loan unless you have the building construction plan sanctioned in your name.
2.You can apply for substituting the name of the applicant of the building plan.
3. If the authority refuses substitution of name, apply for the sanction afresh in your name.
After the gift deed gets executed in your favour the title will instantaneously pass to you. Thereafter, you should apply for fresh permission for yourself if the bank does not agree to sanction loan on the basis of the construction permission given to your father.
Yes, you are very much eligible for loan even if the building plan is sanctioned in the name of your father. Do not worry on this issue anymore.