Took a home loan of which i am not the co-owner

Your wife can gift you the property in whole or in part with the prior permission of the bank, your problem is solved. 

I really appreciate you Mr A V Vishla for your valuable advice.Just needed to know whether I need to pay any tax if my wife gifts me half of the property ? Moreover, If I get the permission from bank(which I think they should not have any problem) , what is the procedure of gifting the whole  property or  its 50% part. Is only declaration through affidavit is sufficient from my wife ? Thank you in advance.

Thank you Mr Vishal. How the stamp duty and registration charges will be calculated? All the original documents are with bank.Will it be possible using the photocopy of the documents?I fall in the 30% tax bracket and the property is in Lucknow(UP). Is it going to be expensive affair? Circle rate of that area is approx Rs 2000/sqft and the plot size is 1250 sqft. House built is of 2 storeys.

Thank You Mr Vishal For your valuable advice. Could you please advice stamp duty and registration charges in A.P. in case of gift deed ? At least I could get an approximate idea of the expense.

Sir

Your wife can transfer the propert by way of gift deed with prior approval from bank , u/s 56(2)vi of Income Tax Act 1961  gift from relative is not taxable.

Sir for calculation of stamp duty and registration contact local advisor

Gift Of Property To Husband

THIS GIFT DEED is made between Mrs……………… X…………………. S/o…………. R/o ………………. (hereinafter called as Donor) and Donee) on …………………..

WITNESSES AS FOLLOWS:

1. That the Donor, owner in possession of the properties specified in the schedule hereto, valued at present at Rs………… does hereby , out of his natural love and affection and also out of his free will, give , transfer and convey the properties, specified in the schedule, free from all encumbrances, to her husband the donee, on this auspicious occasion of completing 25(assume) years of his marriage with the donee , to Hold and have the same to the donee absolutely and for ever.

2. That the said donee accepts the gift.

IN WITNESS WHEREOF the Donor and the Donee have signed this deed.

Sd/-Donor………..

Sd/-Donee………..

Witnesses:

1…………….

2…………….

Schedule

Thanks Sandeep for your helpful advise. I have few queries.Pl help me on this.

1. Just needed to know approx how much total time it takes if I pursue for the stamp duty and registration ?

2. Original documents of the property are residing with bank. How should I proceed ?

3. If my wife gifts me half of the property, then on registration will my name be added as a co-owner of the house?

4. Now if I become 50% owner of the house, will I be able to take the 100% interest portion tax benefit  of the home loan as my wife is not working anywhere and neither she is paying the EMI of the loan?

Thanks you in advance...

Sir 

I can give u sugg. regarding taxation

You will get dectution u/s24b max. 150000 for self occupied house, and rental house no limit

Mr Avinish, Please let me know who actually purchased the house or land and constructed the house thereon originally. Since your wife is stated to be a house wife, she must not be having any independent source of income to make the purchase and she must not be filling her return of income.  If you have purchased the house out of your own funds (in the name of your wife) then you are the actual owner of the property.  Make a declaration with your AO under Benami Transaction Act stated that you are real owner of the property though registered in your wife;s name.  Once done, you will entitled to all deductions availble to a owner of the Property relating to repayment and interest on housing loan under the Act.

Hi Mr CP CHUGH,

   Thanks for your suggestions. To clarify the things, plot has been under my wifes name before my marriage gifted to her by her father. Hence stamp duty duty and registration of the property was under my wifes name when we got married. In 2007, I took a house loan from SBI to construct the house on the plot , in which, bank mortgaed the property and made me and my the borrower and co-borrower of the loan. After marriage , my wife stopped working anywhere and she has no income from any source. So answering to your query, I have not purched the plot .

  Let HR deptt deduct excess Income Tax and you can seek refund from income tax deptt.  For next year you can show it to them that they are wrong.  It appears practically you are paying the loan.  On this thread the experts conversant with Income Tax Act should have reacted.  But you may better cnsult a CA.