Tax exemption on house loan..

[Crossx]

Hi, I am going to build house on small property back in hometown. Plot is in mother's name. If I get a Gift Deed of plot in my name, would it give me tax exemption in salary?

Any help/advice appreciated. Thanks.

 

[honest1]

The exemption is available for Home Loan. But the bank will not give you loan for property which is not in your name. You can get it transferred in your name gift deed and paying applicable stamp duty.

 

[Crossx]

Thanks. Yes, I will be making a gift deed in my name and take loan. My doubt is whether this loan taken on gift deed will give me tax exemption.

 

[Doremon]

My doubt is whether this loan taken on gift deed will give me tax exemption.

Its home loan papers eligible you to file for tax exemption, not gift deed. If you have sanctioned & valid home loan papers in your name, just fine.

 

[Sanav3]

1.) You need a gift deed to allocate the plot on your name.
2.) You need to construct a house on this plot, you can apply for a loan for building the house
3.) This loan would be eligible for tax exemption.

 

[Crossx]

Thanks guys for the clarification.

 

[Doremon]

+1^
@Crossx:- For the loan taken after 01.04.2013, annual interest upto Rs.2.50 lac can be claimed for the loan <25 Lac under Sec 80EE.

 

[Sanav3]

If you take a loan for a flat, you cannot apply for tax exemption till you get possession.
Please confirm how it would work for you.