Gift deed of mortgaged property to son to clain home loan tax benefits
9 months ago
I have a flat in Delhi. The flat is registered on my Name. My son and I have taken joint home loan on the property and he pays the EMI of the home loan. However, he is not able to claim income tax as he is not an owner of the property. Can I make him co-owner of the flat by gift deed so that he can claim income tax benefit? What is the procedure? Original papers are with home loan company.
A.Dear Client,
An owner as a donor can gift a mortgaged property under Section 128 of the Transfer of Property Act, 1882. Your lender/bank establishes a Mortgage Lien on the property when you jointly take out a house loan. A mortgage lien is a claim by your home loan provider to conditional ownership of your property. A lien is a creditor’s legal right to sell a debtor’s collateral property if you fail to meet the terms of a loan arrangement. So, gifting a property with a mortgage lien, you need to notify your lender and get their permission first. The gift becomes lawful if you obtain formal permission from your lender. If you do not obtain your lender’s consent, about the gifting of mortgaged property, you may be subjected to legal action. Your lender can reverse the gift deed of a mortgaged property you signed through a court of law. If you are gifting a mortgaged property, the donee must take the burden/obligation of the mortgage in addition to the gift.
An owner as a donor can gift a mortgaged property under Section 128 of the Transfer of Property Act, 1882. Your lender/bank establishes a Mortgage Lien on the property when you jointly take out a house loan. A mortgage lien is a claim by your home loan provider to conditional ownership of your property. A lien is a creditor’s legal right to sell a debtor’s collateral property if you fail to meet the terms of a loan arrangement. So, gifting a property with a mortgage lien, you need to notify your lender and get their permission first. The gift becomes lawful if you obtain formal permission from your lender. If you do not obtain your lender’s consent, about the gifting of mortgaged property, you may be subjected to legal action. Your lender can reverse the gift deed of a mortgaged property you signed through a court of law. If you are gifting a mortgaged property, the donee must take the burden/obligation of the mortgage in addition to the gift.
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A.Dear client,
To add a co-owner, a new deed has to be created, which must be registered at the sub-registrar’s office for it to be legal under the Transfer of Property Act. This can be done either by creating a sale deed or a gift deed.
Sale deed: The first way is to sell a portion of the property to the other person. The beneficiary can use this sale deed to get themselves registered as the co-owner of the property by paying the requisite charges. Like any other sale deed, this also has to be registered at the sub-registrar’s office. Usually, the stamp duty rate varies between 5%-12% of the property value (varies in different states). The registration charge is 1% of the property value.
Gift deed: Another way to add a co-owner is by gifting a portion of the property to the beneficiary. Here, a gift deed must be executed and registered at the sub-registrar’s office. Stamp duty and registration charges would be applicable at the time of registration. The stamp duty is generally 2% of the property value, along with a 1% registration charge.
To add a co-owner, a new deed has to be created, which must be registered at the sub-registrar’s office for it to be legal under the Transfer of Property Act. This can be done either by creating a sale deed or a gift deed.
Sale deed: The first way is to sell a portion of the property to the other person. The beneficiary can use this sale deed to get themselves registered as the co-owner of the property by paying the requisite charges. Like any other sale deed, this also has to be registered at the sub-registrar’s office. Usually, the stamp duty rate varies between 5%-12% of the property value (varies in different states). The registration charge is 1% of the property value.
Gift deed: Another way to add a co-owner is by gifting a portion of the property to the beneficiary. Here, a gift deed must be executed and registered at the sub-registrar’s office. Stamp duty and registration charges would be applicable at the time of registration. The stamp duty is generally 2% of the property value, along with a 1% registration charge.
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