Transfer of flat and home loan from my father to me
Manoj
(Querist) 13 January 2014
This query is : Resolved
My father bought a flat in Pimpri-Chinchwad 2 years back for me. As I left my job for higher education, he jointly with my mother took the loan and they both own the said flat.
Now I have got a job and intend to repay that loan and also interested to take TAX benefit thereof. As far as I know, TAX benefit can be availed only if the property is on your name.
What are the ways with which I can add my name to the property without facing large amount of registration fees.
Devajyoti Barman
(Expert) 13 January 2014
After the death of your father you and your mother inherit his half share. For this no separate procedure is needed except to apply for mutation in your name.
Anirudh
(Expert) 13 January 2014
Dear Mr. Manoj,
First of all, your name cannot be included as the owner of the property.
Even if it is added, since you are not the borrower of funds, you will not be able to take any tax benefit in regard to any EMI which you would like to pay from your own salary income, at this stage.
If you try to buy the property from your parents, by availing bank loan in your own name (so that your parents can repay the loan taken by them), your parents may have to pay capital gains tax (whether long term or short term - depending upon the period during which they held the property in their name). Further more, for transferring the property in your name, they have to pay (or you have to bear) huge stamp duty.
Therefore, your proposal is not feasible.
Raj Kumar Makkad
(Expert) 13 January 2014
If your father becomes ready to gift share of the aforesaid property in your name by way of a registered gift deed with the NOC of the banker only then you can become its co-sharer.
Advocate. Arunagiri
(Expert) 13 January 2014
You and your mother are the legal heir.
Produce the death certificate, get reliquishment deed from your mother (if she agrees), transfer the property in your name. The stamp duty will be less than Rs.10000/- (if in Chennai)
Rajendra K Goyal
(Expert) 13 January 2014
There seems to be no short cut to give you tax benefit. You have to pay registration fee (in case of gift deed stamp is high in some states). You have to get new Bank loan in your name and would have to pay processing, mortgage and other incidental charges again.
Make full calculations before proceeding.
S.QAISAR ALI ADV.
(Expert) 13 January 2014
property must get mutated in ur name first.then u may a sharer to this property.
Manoj
(Querist) 13 February 2014
Sirs,
I forgot to mention earlier that he is alive.
As suggested by Mr. Raj Kumar Makkad, Do registered gift deed draw stamp duties similar to that while purchasing?
And with gift deed, will I be able to draw tax benefits if bank agrees to transfer the loan on my account?
Anirudh
(Expert) 13 February 2014
Dear Mr. Manoj,
I have already indicated to you that if your father transfers the property in your name (gift involves such a transfer), then he has to pay (or you have to bear) huge stamp duty.
Your father will not be allowed to gift the same, unless he repays the entire loan amount to the bank.
Further more, when you have received the property in gift (which means you are not paying anything for the same), where is the question of any loan towards the property?
Therefore, the suggestion to adopt the GIFT route as a solution to your situation is not workable at all.
ajay sethi
(Expert) 13 February 2014
in maharashtars gift deed attracts 2%stamp duty on market value of property as peer ready reckoner rates . . in addition you will have to bear regsitration charges too . further as mentioned by Mr anirudh your father would need bank consent for transfer of flat to you .
Devajyoti Barman
(Expert) 16 February 2014
GIFT DEED DOES NOT ATTRACT MUCH STAMP DUTY.
In WB it is 0.5% only.
R.V.RAO
(Expert) 08 March 2014
since your father is alive,the transfer of property from your father , to you can only happen by way of a gift deed/ transfer by a sale deed.
both the gift deed and sale deed regn. may cost you any where from 2% to9% of registration value of the property.this cost does not compare favourably with the propsed IT benefit you wish to gain by transfer of house in your name.
so better you buy another flat for IT benefits if you can afford to buy.
else your father and mother may make a will (since the flat is in their joint names)in your name so that you become legal owner owner after their life time, when you need to mutate the flat in your name.
ajay sethi
(Expert) 08 March 2014
we have advised you at length . it is your call now
Manoj
(Querist) 10 May 2014
Thanks a lot sirs
