Hello,
I tried posting the message earlier, not sure if it was submitted. Here i try again.
I plan to buy house. A portion of money would be funded by me and rest would be through bank or soft loans from friends.
Option 1 : Take home loan and avail tax benefits by registering flat in my name
Option 2: Take soft loans from friends, register flat in my dad or mom's name and pay rent to them. In this case i would not be applying for home loan.
What is the best way of accomplishing option2. Will there be any problem if i lend money for my parents and they buy house out of it. Once the flat is in parents name i can pay rent. the rent income would be declared in thier returns.
Is this acceptable? are there any better advises. The intention is to provide some sort of income for parents + try to go for HRA instead of home loan.
