Property purchase
iqbal
(Querist) 23 March 2012
This query is : Resolved
I am planning to purchase a property valued at Rs 18 lacs. I was planning to take a loan of Rs 14 lacs to fund my purchase. But my mother in law who is a widow, offered to give me 14 lacs to purchase the property as an interest free loan. Is it ok to accept this money from legal point of view. What necessary paper work is required to make this transfer of money legal. Will it have any income tax/ other tax implication. Since this is not self earned money, will I become the absolute owner of the property purchased using this money.
ajay sethi
(Expert) 23 March 2012
if your mother in law is giving you interest free loan of rs 14 lakhs for purchase of property you are in for a windfall . interest on laon would have been substantial .
instead of taking loan why not purchase property in joint names of your rmother in law and your wife .
in the laternative obtain letter from MIL that money has been advanced as iinterest free loan to be repaid in ________years . accept money by cheque only . show it in your income tax returns . your mother in law will also have to do the same
