02 June 2012
I have existing housing property jointly in my and wife name.I am purchasing new property and considering the ownership pattern for the same. should i do registration in my own name or jointly with wife. My idea is...i will do registration for new jointly with wife and claim new property as deemed to be let out and set off full interest deduction till yrs when interest is on higher side. after interest benefits are negligble my wife will transfer 50% share in new propert to me and in consideration i will transfer my 50% share in old property to wife. so that i will be absolute owner of new property and my wife will be absolute owner of old property...pls tell whether this tax planning is viable and stand valid?? what will be the registration charges and stamp duty i need to bear?? is there any other better way of doing it/ tax planning??
03 June 2012
Unless you make the transfer to your wife and mutatis mutandies she transfers, the profit shall be treated as capital gain. However, both of you shall be eligible for deduction under section 54. Please note that you will only be able to claim 50% deduction of interest.
03 June 2012
thanks for reply...even if i am paying full EMI ..will i be not allowed to claim full interest against my salary? Also pls highlight stamp duty implications? need more input on this..is there any other better tax planning?
20 June 2012
YES, THERE IS BETTER TAX PLANNING. FOR THAT YOU HAVE TO GIVE DETAILS. THAT IS VALUE OF EACH FLAT, YEAR OF ACQUISITION, MEMBERS IN FAMILY, PERIODICITY OF LOAN, UPTO WHICH YEAR YOU HAVE PAID BACK. WHETHER YOUR WIFE IS HOUSE WIFE OR SERVING LADY. BOTH OF YOU HAS THE LEGAL RESPONSIBILITY TO REPAY THE LOAN. IF YOU WANT TO DISCHARGE AND/OR SHARE THE RESPONSIBILITY OF YOUR WIFE THEN THERE WILL BE NO TAX DEDUCTION FOR YOU. IT IS VICE VERSA ALSO.
CAclubindia
