Q:
Hi one an all, I have a query about home loan necessity ?
I had an plot near Bangalore airport, which I recently sold it off . I have got enough money to pay for the new flat but buying the flat at one short is it advisable ? or shall i pay half down payment and remaining go for home loan ? Suggestions required
My replies to this discussion
Generally speaking, it is mandatory to take a home loan, to make payment of interest and thereby save your income-tax. But in a situation where you have got money available with you by selling your flat, then it makes no sense not to continue make repayment of the housing loan. Moreover, if you do not pay the housing loan and use the proceeds of rent in taking out Bank Fixed Deposit, in that situation your income will be from Bank Fixed Deposit which again would become taxable. This means that Fixed Deposit interest becomes taxable and deduction you get for housing loan which does not make a sense. However, if you plan to use the proceeds of plot to buy yet another plot of land which will mean more income and appreciation in future, then surely it is good point to go in for continuance of housing loan.Generally speaking, it is mandatory to take a home loan, to make payment of interest and thereby save your income-tax. But in a situation where you have got money available with you by selling your flat, then it makes no sense not to continue make repayment of the housing loan. Moreover, if you do not pay the housing loan and use the proceeds of rent in taking out Bank Fixed Deposit, in that situation your income will be from Bank Fixed Deposit which again would become taxable. This means that Fixed Deposit interest becomes taxable and deduction you get for housing loan which does not make a sense. However, if you plan to use the proceeds of plot to buy yet another plot of land which will mean more income and appreciation in future, then surely it is good point to go in for continuance of housing loan.
Q:
Me and my brother took home loan from lic housing finance. On loan documents we have our names, but on property sale deed my parents names are only present.
Since our names are not there in sale deed we are not able to apply for Tax exemption.
Is there anyway for us to claim tax benefits as me and my brother are only paying the home emi's for which we have proofs from banks.
My replies to this discussion
If your names are not mentioned in the Sale Deed, then you will not get any tax deduction in respect of housing loan interest or repayment of the housing loan. Thus, it is clear that merely making payment of EMI does not confirm tax benefit on the assesses.If your names are not mentioned in the Sale Deed, then you will not get any tax deduction in respect of housing loan interest or repayment of the housing loan. Thus, it is clear that merely making payment of EMI does not confirm tax benefit on the assesses.
Q:
I am planning to buy 2 apartments, both for investment purpose and would be taking loan for both of them.
I get to understand that the first one is always deemed self-occupied and hence tax benefit of 1L for principal and 1.5L for interest paid is given. Is this true even if the property is not self-occupied and not given on rent?
What will be the tax benefit would I get for both the apartments?
My replies to this discussion
If your property is not self occupied and also not given on rent, still you will get deduction in respect of housing loan interest up to Rs. 1.5 lakhs. If your second house property is given on rent, in that situation the entire interest on the second house will be deducted from the rental income.If your property is not self occupied and also not given on rent, still you will get deduction in respect of housing loan interest up to Rs. 1.5 lakhs. If your second house property is given on rent, in that situation the entire interest on the second house will be deducted from the rental income.
Q:
I sold a piece of land in 2012. With that money I bought a residential flat to save on the tax over capital gain. Now I am planning to sell my another piece of land. What can I do to save on the tax over capital gains this time?
My replies to this discussion
Please go very carefully through the provisions contained in section 54 and 54F of the Income-tax Act, 1961. Apparently, it appears that you will not be able to save income-tax.Please go very carefully through the provisions contained in section 54 and 54F of the Income-tax Act, 1961. Apparently, it appears that you will not be able to save income-tax.
