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POSTED BY ON January 22, 2013 12:51 pm COMMENTS (14)
Hi there
Can I take home loan ( Rs. 700000) from my father and give interest to him
so that I can save my incometax
my dad is retired govt servant under nill tax
his pension is rs 18500
please let me know the rate of interest and what documents to made
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Dear Pankaj, No TDS is required.
Thanks
Ashal
hi there
i am paying rs 7000 approx to dad for home loan
do i have to cut TDS
right now i have paid rs 14000 for two months
Dear Pankaj, if it’s a rented out property, you can claim the interest benefit beyond the limit of 1.5L Rs. (this is the limit for self occuypied property). Yes the rental income ‘ll be added to your income.
In case, you are not living in your house & it’s lying vacant, the maximum benefit ‘ll be this 1.5L Rs. interest. it includes that 20% interest carry over also.
thanks
Ashal
Dear Pankaj, Please do note the interest paid by you for the transactions (read loan) done during current FY i.e. till March 2013, can be claimed for income tax benefit only after completion of your house contruction & it’ spossession with you.
This gone by interest is available for 5 successive Fy from the first FY you start taking benefit in 20% each installments.
Thanks
Ashal
hmmm ok
If I am not living there then
bcoz its first property( I can take benefit of home loan) I am purchasing and I live in my parents house
is it technically wrong
okay
If i start construction in mid feb itself then
bcoz after payment I have to do boundrywall
and my date of payment is 30th jan 2013
The date you actually start living in the house is what counts
Cost of land is rs 10,000,00
I am taking loan Rs. 700000 ( father) and Rs. 300000 ( Brother’s wife) and will take Rs. 500000 additional loan from Brother’s wife for building 2 rooms and boundrywall after march 2013.
Is it okay to claim interest benefit in incometax of two month ( feb 2013 and march 2013), because I will be constructing it after march 2013
Dear Pankaj,
Technically:
The interest payable before start of construction work will be deductible in five equal annual instalments commencing from the FY r in which the house has been acquired or constructed.
So assuming you complete the house and take possession in Dec. 2013 then the interest rate from feb 2013 to Dec 2013 can be claim in 5 equal installments starting from FY 2013-4 only
Dear Pankaj, yes you can take loans for your hole purchase from one or all relatives mentioned by you. Please do prepare laon documents on 100 Rs. stamp paper.
Please pay at least market interest rate to your father or any other reltive say 10% or 12%. You may keep low interest rate also, but in that case, your income tax saving ‘ll be very low for such low interest.
thanks
Ashal
I wanna ask few things more
will ask within hours
thanks for helping
thanks for quick reply
I can take loan from mother, father
or from family members like my own wife, brother, brother’s wife
Yes the same rules apply.
Dear Pankaj,
only interest part can be used for tax deduction not the principal. The rate of interest has to something reasonable as fixed by your father.
You need to get a certificate from your father stating the interest amt
and you need proof for the cash flow
loan from your father and payment of interest (both your bank records)
pattu