Query on loan on property bought jointly by my mother and me ?

POSTED BY meeyush ON July 17, 2014 11:10 pm COMMENTS (3)

Hi,

My mother wants to sell the house and we want to buy a flat jointly with my husband and my  mother with the proceeds. But the flat that we want to buy will be more expensive than the proceeds, we will need to arrange for more funds. PLease guide me in the following ways

a) if my husband can apply for a loan on this join property?

b) if yes can he avail income tax rebate from the loan

c) my mother will have to jointly buy it so she doesnt have to pay capital gain tax, so if she buys jointly will she able to avoid capital gain tax?

d) how many poeple can be joint owners in a property?

thanks a tonne

Meera

3 replies on this article “Query on loan on property bought jointly by my mother and me ?”

  1. meeyush says:

    Thankyou so much for the reply. I request you to clarify who will have to keep the first name in the property – whether my mother can be exempted from capital gains tax even if she is the co-owner/second name?

    1. Credexpert says:

      Dear Mrs. Meeyush,

      If your mother is re-investing all the sales proceeds she receives from the first house for purchasing the new property, the amount will be exempted from capital gains tax.

      Regards,
      Credexpert

  2. Credexpert says:

    Dear Meera,

    a) Yes, your husband can apply for a loan on the joint property. However, your mother, as a co-owner of the new property, will have to be the co-borrower on the loan.

    b) If your husband is paying the installment on the loan, then he can claim the deductions under the Income Tax Act.

    c) If your mother invests the sale amount to buy the new property, then she need not pay any capital gains tax

    Regards,
    Credexpert
    http://www.credexpert.in

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