Once availed in the base home loan, the same cannot be again availed for the top-up home loan.
By Chaitali Dutta
Is the interest and principal paid on top-up home loan eligible for deduction under Section 24 and Section 80C?
— Samuel D
From the tax deduction point of view, the home loan and the top-up home loan are both eligible. However, the deductions are subject to the overall limit of Rs 1.5 lakh for Section 80C and an overall limit of Rs 2 lakh for rebate under Section 24, for a single individual. Hence, once availed in the base home loan, the same cannot be again availed for the top-up home loan.
My mother took a loan in 1996 and died in 1997. The guarantor of this loan was my father and grandfather. They are both dead. At present the cooperative bank does not allow me to withdraw the money from my grandmother’s account. The account is in the name of my grandmother and the second holder was my grandfather. How can we get the money?
— Sourav Bhowmick
From the above, it is not clear as to whether the loan taken by your mother has been paid off (including any interest). If there is any outstanding amount not cleared by the guarantors as well, the bank is within its rights to freeze that account. Once you pay the outstanding, it will remove the withdrawal restrictions.
My building is being redeveloped. My wife and myself own a flat each in single name. How can I add our names as joint holders with equal rights? Can our names be added in the new development agreement?
— Sharad
Yes, it is possible. Joint holders will have equal rights by default unless a contrary clause is mentioned in the agreement itself. Hold the properties in joint names as it reduces paperwork in case a transfer of ownership is needed.
I am buying a second home. Should I repay the first loan and then go for the second home loan?
— Ravi Mishra
Rate of interest is the only element you should look at. If the old loan is cheaper, continue that. The bank will calculate your eligibility based on the outstanding old loan. You may avail a smaller new loan, which will increase your margin money in the new property.
The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance. com). Send your queries to .
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