Income tax positive aspects for principal and interest beneath Sections 80C and 24B can be availed for third loan.
By Chaitali Dutta
l My father stood as a guarantor for a individual who had taken a loan. My father had presented the shop owned by him as a assure. Now, my father has expired and the individual is not paying his EMIs on time. I am receiving notices from the bank that if he fails to repay, it may possibly place my home for auction. What should really I do? —Alok Pandey
This is certainly an unfortunate predicament and will likely have to have legal assistance to uncover out strategies to assistance you. From the bank’s point of view and the usually accepted norms, the death of a guarantor does not extinguish his liabilities. The quantity in default by the borrower is basically a duty of your late father also, to repay. Hence as a legal heir, you inherit the assets as effectively as the liabilities of your father. In case the bank requires possession of the home, it will be inside its legal rights to do so.
l My brother pledged my father’s home to take OD loan of `60 lakh. He could not spend the interest of `24 lakh. The bank has kept our home for auction at `65 lakh. My father died six months ago. We are 3 brothers and 3 sisters. Will the bank attach the borrower’s assets? —Raghavendra Ekbote
Here I recognize that the loan was taken by your brother and your father jointly. As the owner of the pledged asset, your father was basically a co-borrower. In such a predicament, the legal heirs of an intestate individual inherit the assets as effectively as the liabilities. The bank will take possession of the stated home and will use the proceeds of the auction to extinguish all outstanding liabilities (principal and interest). All legal heirs of your father have equal rights to the remaining quantity immediately after the loan repayment.
l My cousin is getting a third property by way of a property loan. He had earlier taken property loans for each homes and repaid the quantity. Can he take IT positive aspects for this home also? —V Kumar
Income tax positive aspects for principal and interest beneath Sections 80C and 24B can be availed for third loan. For the latter, if the home is self-occupied, the limit is Rs 2 lakh. If the home is leased out, then total interest paid on loan may possibly be utilised for deduction beneath Section 24B.
(The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance.com).) Send your queries to