Regarding home loan (Equity & Top up Loan) co-borrower to co-owner process, can it be a rent?

Hi,

- Repayment of installments can not be treated as rent. To take the benefit, it is better to add yourself as co-owner in the property.

Thanks

Hi,

There are 2 things that you can do.

1. Make a rent agreement with your father, pay him rent and he pays the installments or

2. Add yourself as a coowner and take 100% tax benefit .

You cannot consider the installments paid as rentals paid to your father

Regards,

Nikhil

Agricultural income is exempt from taxes. His house property income will be taxable as per tax slabs and after taking into consideration the various deductions that are available for him. You may want to discuss this over a call

Hi,

Hope you are doing well !

Repayment of loan cannot be treated as Rental payment.

1.Make a rent agreement and pay him.

2. Add yourself as a co-owner and take tax benefit.

Hi,

Agriculture income is exempt from tax.

House property income will be taxable as per his slab rate after considering all the deductions/benefits available for him .

Yes you can make rent agreement with your father and pay him the rent so out of that he can pay home loan installment just make sure that rent is near the market rate. If the total rent for the year is around 3 lakh he will have to pay no income tax. I am assuming he is a senior citizen so for the senior citizen slab rate starts from 3 lakhs and also he will deduct loan interest paid principal paid so he will have to pay no tax.

Also his farming incom is exempt income.

So no income tax.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Hi,

You can enter into a rent agreement with you Father and pay rent. If you pay rent of INR 3 lacs p.a., your father will not have to pay any tax and you can avail HRA deduction assuming you are a salaried employee.

Hi

Yes, you may avail tax benefits for HRA or 80GG or a business expense ( as applicable to you) if you're paying rent to your father.

Route the transaction in such a way that you pay rent to your father and he pays the installment.

Also, get a rent agreement executed.

He may show such 300000 income as income from house property. There would be no taxes applicable.

It of 3 lacs, 30% I.e 90000 would be standard deduction. So total income would be 210000 which is below the threshold limit of 250000.

Hi,

- This is the best option. He is not required to pay any tax.Farming income is exempt and upto Rs.3 lacs there is no tax.

Thanks

Hello Sir

Yes you can make a rent agreement with your father and you can pay rent Upto Rs.3,00,000/- to him.you can avail HRA deduction assuming you are a salaried employee.

As your father's other income is from agriculture which is exempted income therefore no tax liability arises on him.