By Chaitali Dutta
Is the interest and principal paid on prime-up home loan eligible for deduction below Section 24 and Section 80C? My bank denies this.
—Gurpreet Singh Sehgal
A prime-up home loan is eligible for tax positive aspects below Section 80C and Section 24 if it has been utilised for acquisition/ building of residential house or renovation of the stated house. If you have the expected receipts as proof, you can formally create to them to situation the interest certificate. The positive aspects of Sections 80C and 24 will be applied by your CA whilst filing your IT returns.
I purchased an below-building flat with a bank loan. The builder got Rs 10 lakh from the bank. For the remaining Rs 3 lakh, he is asking me to coordinate with the bank. Is it my duty to coordinate with the bank?
—Sagar Challa
The home loan is a binding agreement among you and the bank. The builder is not a party to it. Whereas if you look at your sale agreement, it is among your self and the builder. The builder will situation demand letter to you on completion of specific stages of building. You have to strategy the bank with the demand letter, and it will disburse the quantity as per the agreement worth. So, it is you who has to coordinate with the bank at each and every disbursal.
As I have 5 years of service left (I am 55), can I apply for a joint home loan with my only daughter who is working and unmarried (age 30)?
—Arvind Kansal
Yes. The loan eligibility will be calculated on your joint existing earnings. The loan tenure can be more than 5 now, as your daughter has yet another 25-30 years of earnings inflow capability. You can split the EMI and take earnings tax exemption below Section 80C and Section 24, individually. The house has to be registered in joint name.
I am however to get the PMAY subsidy for my ICICI Bank home loan application in November 2020. What really should I do?
—Sunil Khanse
The bank really should be in a position to give you a view as to when to anticipate the subsidy. You could also verify for the status of your application at the following internet site PMAY-HFA(Urban) (pmaymis.gov.in) with your name, father’s name & mobile quantity, or the Assessment ID.
The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance. com). Send your queries to