Dear experts,
My father (retired) purchased a flat at my native place jointly with me in March 12. We took loan from HDFC (30 L) with me as applicant and my wife & father as coapplicant. Wife's name is as coapplicant but she is not the co owner.
My father wants to sell our house (which is exclusively in his name) and repay the loan. The house was built by him over a long period after purchasing land in 1976. We have land papers but no documents to prove the building cost.
My queries are:
(i) whether father can pay entire loan if he gets the price for old house.
(ii) whether he can get advantage of LTCG on this amount.
(iii) As new flat is in joint name whether he is allowed only 50% of loan amount repayment?
My aim is to save LTCG tax. Please suggest the methods.
Thanx in advance.
CAclubindia
