Home Loan on Resell property

POSTED BY Sunny ON July 11, 2011 4:21 pm ONE COMMENT

So I am back again with my home loan query. 🙂

 

Ok, Here is the deal. I have finalized a property in NalaSopara-E under resell from first occupiant of the same flat(He bought from Builder). Deal will be done on 100% cheque basis (White money).

Situation:

1. The seller has a loan from Federal Bank, So its a take over.

2. He wants some money NOW, like 35% of the total value as he needs to close his debts (Other then bank loan).

3. I have some amount in hand to pay and not all.

My doubts :

1. If I Borrow some money from my relatives to give him, (As loan will be issued only after I make the Agreement with the seller). And return the money to my relatives when loan gets through. Will there be any gift tax implication for borrowing or for returning the money?

 -HDFC told me that they just need the letter from respectives lenders (my relatives) saying its a gift, but my CA told that if you take gift from non-blood relatives it has implication of 30% tax. AXIS told me that they dont need any letter, they dont care about source of money as long as I issue the cheque. Please help, I am confused.

 

– One more thing IF I give him the 35% of money in advance and then make the agreement and get the loan done. Bank will give me loan for which I am eligible and split the cheque beteen Seller and me (As I paid extra money) ? OR it will just consider the remaning amount for issuing the loan amount?

 

I hope people will reply Specially Ashal and Manish.

 

 

 

One reply on this article “Home Loan on Resell property”

  1. There is a similar discussion asked by a seller:
    http://localhost/jagoforum2/sale-of-house-financed-through-housing-loan/2230/

    1) Direct blood relatives [including your direct uncles and aunts and cousins and their spouses ] and blood relatives of your spouse can give you unlimited money. For other relatives gift above 50,000 is taxable.
    Eg: If your uncle who is your Father’s BLOOD siser’s husband lends you it is a tax free gift
    If your fathers COUSIN lends you money it is taxable!

    — IN ANY CASE —
    If gift is invested the returns are taxable for the gift giver
    If you consume a gift, say,on a vacation etc it is tax free
    —————-
    CAUTION: The seller is essence askng 35% token advance, this is a huge amount. Deal with caution.

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