When there is no outstanding loan on 1st house ?

POSTED BY seeni_pv ON February 23, 2014 8:37 pm COMMENTS (3)

Dear Sir(s)

Please clarify my below query. If I buy a new flat in pune in my wife’s name (which will be our second house) and we are self occupying it. Do i get complete tax exemption on the interest paid since it is our 2nd house?
please note that

1. our 1st house which is in chennai is also in my wife’s name.
2. It is not rented out, but my parents are living.
3. The loan we took to built our 1st house has been already completed

With Best Regards,

Poovannan

3 replies on this article “When there is no outstanding loan on 1st house ?”

  1. ashalanshu says:

    Dear Seeni, as the property is to be purchased for self residence, you are arranging money for down payment as well as loan is also given based upon your repayment capacity, so to avail tax benefit, you should register the property in your own name. How? the interest paid by you upto 150000 Rs. ‘ll be available to set of from your salary income directly.

    Thanks

    Ashal

  2. ashalanshu says:

    Dear Seeni, as the Pune house ‘ll be self occupied, the interest benefit ‘ll be zero to you for the fact that you are not the owner of the house. What benefit you are trying to get by purchasing all the property in wife’s name? Any serious reason other than Tax evasion?

    Thanks

    Ashal

    1. seeni_pv says:

      Dear Mr.Ashal,

      Other than its tradition in our family there is no serious reason behind buying property on wife’s name. I’m just interested to know if there is any tax benefit involved. Like many others I also to want reduce the tax as much as possible. Certainly don’t want to evade

      Regards,
      Poovannan

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