Joint property purchase

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 1 year ago in Capital Gains Tax from Raipur, Chhattisgarh
Dear Sir,

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.
Abhishek Dugar
CA, Mumbai
1081 Answers
5.0 on 5.0
  Talk to Abhishek Dugar
Yes you can. Bank will make your father as joint borrower.
Saket Jain
CA, Greater Mumbai
23 Answers
4.9 on 5.0
  Talk to Saket Jain
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.
Shyam Sunder Modani
CA, Hyderabad
1183 Answers
5.0 on 5.0
  Talk to Shyam Sunder Modani
Dear Sir,

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.

Thanking You.

Regards,
CA Rohit R Sharma
BCOM, CA, LLB - GEN, CERT. FAFP.
Rohit R Sharma
CA, Mumbai
1080 Answers
5.0 on 5.0
  Talk to Rohit R Sharma
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.
Shiv Kumar Agarwal
CA, Delhi
197 Answers
5.0 on 5.0
  Talk to Shiv Kumar Agarwal

Ask a Question

Get tax advice from top-rated chartered accountants. It's quick, easy, and anonymous!
Ask a question

Other Questions

Chartered Accountants

Rohit R Sharma
CA, Mumbai
1080 Answers
5.0 on 5.0
Abhishek Dugar
CA, Mumbai
1081 Answers
5.0 on 5.0
Vishrut Rajesh Shah
CA, Ahmedabad
479 Answers
5.0 on 5.0
Shyam Sunder Modani
CA, Hyderabad
1183 Answers
5.0 on 5.0
Pradeep Bhat
CA, Bengaluru
217 Answers
5.0 on 5.0
B Vijaya Kumar
CA, Hyderabad
444 Answers
5.0 on 5.0
Vishakha Agarwal
CA, Bangalore
337 Answers
5.0 on 5.0
Lalit Bansal
CA, New Delhi
146 Answers
5.0 on 5.0
Vidya Jain
CA, Kolkata
95 Answers
4.0 on 5.0
Keerthiga Padmanabhan
CA, Greater Mumbai
33 Answers
5.0 on 5.0