My father has received sale proceed of Rs. 82 lakhs from old property owned by him, now we plan to invest the complete amount in purchase of new property which is cost approx Rs. 97 lakhs. Now to payoff the excess amount of Rs 15 lakh, I (son) propose to become joint owner in the property & apply for home loan in my name as my father is senior citizen & retired. I can become joint owner which is understood from few old articles posted here, but my question is can i take home loan to fund excess amount??
Asked 2 years ago in Capital Gains Tax from Raipur, Chhattisgarh
You can definitely take loan to fund excess amount.
Further this transaction can be structured in most effective way to gain some more tax advantages.
Feel free to reach out for further details.
Yes you can. Bank will make your father as joint borrower.
CA, Greater Mumbai
Yes you can take loan for excess amount there is no problem at all. The condition for exemption is that the sale proceeds is to be invested , there is no restriction that you cannot purchase a property in excess of that.
Surely you can take a Joint Loan for purchase of new property. There will be no tax hassles in the same and the bank will take care of the Legal Formalities. So nothing to worry about.
Trust this clarifies your query.
Feel Free to get back for further clarifications.
CA Rohit R Sharma
BCOM, CA, LLB - GEN, CERT. FAFP.
You can take loan to fund excess amount. The exemption is allowed if the sale proceeds is to be invested , there is no restriction that you cannot purchase a property in excess of that.