Home loan, inheritance tax and interest tax saving

Aman Saxena (1 Points)

09 October 2018  

Hi Everyone,

I am planning to purchase a flat soon with my monther's name as primary-applicant and mine as co-applicant. Although I am going to make all the payments of EMIs, but I am making my mother primary applicant so that I can take benefit of lower interest rate as she is a PSU bank staff and loan interest is 2-3% cheaper.

I would like to know the following:

- Inheritance tax: By doing this, we plan that my mother will make a will in favour of my name so that I get the flat on my name afterwards. Question is will there be any significant inheritance tax in such event?

- Interest Tax Saving: Would I be able to take benefit of the whole interest paid on home loan despite the fact that I am a second applicant?