• Housing loan transfer of ownership

I have taken a Housing Loan from SBI and started repaying it. The property deed is in the name of my father and loans is against my income and prepaying by me. As per the latest Income tax rule Housing Loan principal and interest 's tax exemption is eligible to the owner of the house only. In our case the owner is my father. Can I change the owner ship of the property while continuing in the loan. Please suggest a way to get tax exemption for the present HL I am m paying, otherwise i need to pay big amount as tax.

Please help me.
Asked 7 years ago in Property Law
Religion: Christian

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6 Answers

1) since your father is the owner of property your father can execute sale deed in your favour with bank approval

2) once you have purchased the property loan can be transferred to you and you can claim exemption for repayment of housing loan

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0

1.Generally in such circumstances the lan payer also becomes joint owner of the house.

2. I am surprised how your father could become its sole owner.

3.In any event he can always transfer full and part of share in the proeprty in your favour to make you sole or joint owner.

4.Thes ame is to be done through a deed of gift.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

1) so with bank consent father can transfer property to you

2) father name can be deleted as applicant for loan

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0

You say that you are paying the housing loan repayment, but it is a surprise that you are not getting tax exemptions.

If you are not the owner then you are not eligible for housing loan at all, so clarify that how did the bank sanction loan and to whom?

Of course as per law, a co-borrower, who is not a co-owner, is not entitled to tax benefits.

Taking a joint loan enhances the eligibility of home loan application. A single applicant’s income might not be sufficient for servicing a high loan amount. Hence you might have been roped in as a co-borrower.

You cannot transfer the ownership to your name during the pendency of loan even though you are a co-borrower.

If your father is willing to transfer the property in your name by way of settlement, he has to obtain NOC from the lender i.e., bank and after that registration you can become the owner

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

I have taken HL for the extension work of old house. The property of that land belongs to my father. So the loan is sanctioned to m as first applicant and my father is the second applicant.

You mean to say that you are not the owner or even a co-owner to the property, hence you are not eligible for tax rebate for the loan and loan interest paid.

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

1. Your father can with the prior consent of the bank in writing execute the sale deed in your favour.

2. Thereafter, you can step into the shoes of your father by getting the loan transferred to you. Once the loan is transferred to you then you will be eligible for exemption on principal and interest.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

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