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Dear sir I have taken a home construction loan of Rs 18 lakh. I am constructing the house in the property, which is in my mother's name. The EMI starts from April 2009. The Loan has been taken jointly by my mother and me. Now can I avail TAX Benefit on the EMI? I work for a Private Institute.

Praveen GS

Since the property is only in your mother's name ie the sole owner of the property, you will not be able to get tax deduction benefits on the construction loan as a co-borrower to the loan. Merely being a co-borrower to the loan does not make you eligible for tax deduction benefits on the loan.

I have a home loan with LIC HFL and the property is in my name where my parents reside currently. My husband has his home loan too and he says the EMI for two houses. He is claiming tax rebate for the property in his name and will it be possible for him to claim tax rebate for my home loan too?

I live in Chennai, India and the property is also in Chennai.

Abitha

No, your husband cannot claim tax deduction benefits on a home loan as he is neither the co-owner to the said property nor is he a co-borrower to the loan.

I am planning to buy a flat with my parents. Suppose the EMI is 75k. Then my father, my mother and me are planning to share it equally (i.e. 25K) each. Now I want to know if all three of us will be eligible for tax benefits (under 24b and 80c). Only one of us can claim tax benefits.

Also, does it matter in whose name is the property going to be? We are planning to take it in my mother's name. So will that change the equation? What is your recommendation in this, so that we can get maximum tax benefit?

Apurv

You can get a joint home loan if your pooled incomes can justify the loan. If you register the property solely in your mother's name, she will be the only one to be able to claim tax deduction benefits on the home loan as she is the owner of the property.

To be able to claim tax deduction benefits on the loan, you have to be a co-owner to the said property as well as a co-borrower to the loan.

If the loan is taken jointly by your parents and you for a jointly owned property, each of you can claim tax deduction benefit on the loan to the extent of your respective shares in the loan. All of you can enter into a share agreement, indicating the respective shares in the property and the loan.

Get a draft of the share agreement on Apnaloan.com.

I have home loan from HDFC and their interest rates are higher than market rates and RBI regulations. Now, I have decided to get off HDFC and apply to some nationalised bank like SBI.

My problem:

As a part of formality, I have to submit my society NOC letter to SBI as well (society has already given a NOC to HDFC).

My society is telling me that they cannot give another NOC to SBI without NOC letter from HDFC. In other words, HDFC has to give my society a letter telling them that they do not mind transferring loan to another bank.

Now, HDFC is telling me that they cannot give me any such letter and this is where I am stuck. How can I get out of this situation? Please help.

Thanks, Jatin

Usually, the issue is sorted out by the society issuing a NOC in the name of the new lender (SBI in your case) clearly mentioning that they have already given an NOC to the existing lender (HDFC in your case) and have yet to receive full discharge from them and that the NOC given to the new lender is subject to receiving such a discharge from HDFC.

I work in Delhi. In June 2008, I bought a house in Meerut (UP); my family is from Meerut. I stay on rent in Delhi.

I have submitted investment proofs for home loan principal of Rs 1 lakh (under 80C) and interest of Rs 75k. I had also submitted rent receipts for Rs 14k in Delhi. My take home is Rs 46k.

Now at the eleventh hour, my accountant is questioning that I can’t avail both HRA and rent receipts. Law is not settled, I am told. However, I had verified it before buying house that I could avail both benefits provided I was not living in the house I have bought on loan.

Please guide me on the same.

Poonam Sharma

Claiming tax deduction benefit on home loan and HRA exemption is de-linked.

You can claim tax deduction benefits on home loan whether it is lying vacant or is rented. You can get tax benefits on interest up to Rs 1.5 lakh for the interest under section 24 (b) and Rs 1 lakh for the principal under section 80 C.

The benefit is available assuming that you are a co-owner to the said property as well as a co-borrower to the loan. You can claim HRA exemption if the house is rented in your name.

Harsh Roongta is CEO apnaloan.com, a price comparison site that allows consumers in India the ability to compare the EMI, interest rates and other fees for home loans, car loans, personal loans, business loans and credit cards.