Adding co borrower to sale deed for home loan tax exemption
Ravi
(Querist) 04 February 2014
This query is : Resolved
Hi Sir,
Me and My brother applied for a joint home loan from LIC Housing Finance.
But on Sale deed we made our parents as the owners of the property and our names are not present in sale deed.
Now when I submitted home loan docs for IT exemption, our finance team rejected saying that borrower name should be mentioned in sale deed.
I am struck with no options as main reason for home loan is to avail income tax exemption.
Could you please help us in solving this issue.
(Our property is in Hyderabad, Andhra Pradesh.)
ajay sethi
(Expert) 04 February 2014
only owner of property can avail of income tax exemption if he has taken loan . your parents can gift you the property by executing gift deed or execute sale deed for transfer of property in your name . but you would need prior permission of LIC housing finance
ajay sethi
(Expert) 04 February 2014
however please note that sale deed would attract higher stamp duty in range of 5%compared to gift deed
Rajendra K Goyal
(Expert) 05 February 2014
Owner of property can only get deduction on Home loan installment and interest subject to fulfillment of other conditions.
