Buying house which is in my father's name
I want to legally purchase a floor of 2 Storied House solely owned by my father. My Question is can I be able to buy it legally & take a home loan against it? Can I apply for tax exemption against the Home Loan? Please provide your necessary advice in this regard.
Asked 3 months ago in Property Law from Kolkata, West Bengal
1) you can purchase your floor in your father house and apply for bank loan
2) yiu would be entitled to tax deduction for principal and interest paid on loan
If your father separates he house into two floors and executes a registered sale deed in your favor for the desired one floor alone, you can very well buy it and acquire marketable title to that portion of the property.
Your father can even execute a settlement deed in respect of one floor alone by dividing property into two portions, ground and first floor.
Once you acquire title by this registered deed, if you are otherwise eligible for loan, you may apply for loan and also can claim tax exemption for the loan interest as per rules.
1. Both you and your father are two separate individuals in the eyes of law,
2. You can certainly buy a property or part thereof from anybody including your father,
3. You can take home loan from the Bank to finance the said purchase by mortgaging the said property to be bought by you after the sale deed is registered,
4. You shall be able to avail the I.Tax exemption on the expenditure/IMI/Interest etc. as provided in the I.Tax Act.
The deduction to claim principal repayment is available for up to Rs.1,50,000 within the overall limit of Section 80C. The Amount paid as Stamp Duty & Registration Fee is also allowed as tax deduction under Section 80C even if the Assessee has not taken Loan. Tax Benefit on Home Loan for payment of Interest is allowed as a deduction under Section 24 of the Income Tax Act.
yes you can purchase a floor of your father's building.It will be also possible to get it registered through a gift deed by your dad to avoid stamp duty if you chose so.
2. When you purchase a property you need to pay only annual property tax, if it is a gift deed your dad can also get exemption from tax of the sale produce .Your father if he is a senior citizen tax reductions can be availed too.
i f you buy the property and avail a housing loan, you can get tax deduction for the amount of installment paid on the same.