Home loan entitles Individuals to Deduction Under Section 80C of up to Rs. 1.50 Lakh and Interest Deduction under section 24 of up to Rs. 2 Lakh. Articles deals with Faqs on Benefit U/s. 24 and 80C on Jointly Owned Property, Under Construction Property, multiple properties and Simultaneous benefit of Interest exemption and HRA.
Q-1 What are Income tax benefits of taking and repaying a housing loan under EMI Plan?
You will be eligible to claim both the interest and principal components of your repayment during the year.
- Interest can be claimed as a deduction under Section 24. You can claim up to Rs. 200,000 (Rs. 150000/- up to A.Y. 2014-15) or the actual interest repaid whichever is lower. (You can claim this interest only when you are in possession of the house)
- Principal can be claimed up to the maximum of Rs. 150,000 (Rs. 100000/- up to A.Y. 2014-15) under Section 80C. This is subject to the maximum level of Rs 150,000 (Rs. 100000/- up to A.Y. 2014-15) across all 80C investments.
- You will need to show the statement provided by the lender showing the repayment for the year as well as the interest & principal components of the same.
Q-2 If I buy a house jointly with my wife and take a joint home loan, Can we both claim income tax deduction?
Ans:-Yes, if your wife is working and has a separate source of income, both of you can claim separate deductions in your income tax returns.The repayment of principal amount of the loan can be claimed as a deduction under section 80C up to a maximum amount of Rs. 1.50 (Rs. 1 Lakh up to A.Y. 2014-15) lakh individually by each co-owner.
In cases where the house is owned by more than one person and is also self-occupied by each co-owner, each co-owner shall be entitled to the deduction individually on account of interest on borrowed money up to a maximum amount of Rs. 2 lakh (Rs. 1.50 Lakh up to A.Y. 2014-15). If the house is given on rent, there is no restriction on this amount. Both co-owners can claim deductions in the ratio of ownership.
Q-3 My husband and I have jointly taken a home loan. He pays 75 percent of the EMI. What will be our individual tax benefits?
Ans: – As you have taken a joint home loan, both of you are eligible for tax exemption for your share of the EMI paid. For claiming income tax deduction, the EMI amount is divided into the principal and interest components. The repayment of the principal amount of loan is claimed as a deduction under section 80C of the Income Tax Act up to a maximum amount of Rs. 1.50 (Rs. 1 Lakh up to A.Y. 2014-15) lakh individually by each co-owner. The repayment of the interest portion of the EMI is also allowed as a deduction under section 24 of the Act, which is given under the head “income from house property”. In case you are living in the house for which home loan is taken, both of you shall be entitled to deduction in the ratio (3:1) on account of interest on borrowed money up to a maximum of Rs. 2 lakh individually (Rs. 1.50 Lakh up to A.Y. 2014-15). If the house is given on rent, there is no restriction on this amount and both co-owners can claim deduction in the ratio of ownership- 3:1 in your case.
Q- 4 plan to buy a house by raising loans from friends and relatives. Will I be eligible for tax benefit from all sources?
Ans: – Interest payment to friends and relatives can be claimed u/s 24 but only against a certificate received from them. In the absence of the certificate, you would not be eligible for the deduction. The recipient of interest income who issues the certificate is liable to pay tax on the interest income that he receives. As far as the principal payments are concerned, they would not qualify for tax benefit as loans only from notified institutions and banks are eligible for such deductions.
Q- 5 What are the tax benefits that I can avail of for repaying a home loan ?
You will be eligible to claim both the interest and principal components of your repayment during the year.
- Interest can be claimed as a deduction under Section 24. You can claim up to Rs. 200,000 (Rs. 1.50 Lakh up to A.Y. 2014-15) or the actual interest repaid whichever is lower. (You can claim this interest only when you are in possession of the house).
- Principal can be claimed up to the maximum of Rs. 150,000 (Rs. 1 Lakh up to A.Y. 2014-15) under Section 80C. This is subject to the maximum level of Rs 150,000 (Rs. 1 Lakh up to A.Y. 2014-15) across all 80C investments.
- You will need to show the statement provided by the lender showing the repayment for the year as well as the interest & principal components of the same. Double Benefit on Taxes on Housing Loan
Q- 6 . Can I take advantage of tax benefits from a home loan as well as claim House Rent Allowance (HRA) ?
If you took a home loan and are still living in a rented place, you will be entitled to:
1. Tax benefit on principal repayment under Section 80C
2. Tax benefit on interest payment under Section 24
3. House Rent Allowance (HRA) benefit
Of course, you can claim tax benefits on the home loan only if your home is ready to live in during that financial year. Once the construction on your home is complete, the HRA benefit stops. If you took a home loan, got possession of the house, have rented it out and stay in a rented accommodation, you will be entitled to all the three benefits mentioned above. However, in this case, the rent you receive would be considered as your taxable income.
Q- 7. I have a home loan in which I am a co-applicant. However, the total EMI amount is paid by me. What is the total income tax exemption that I can avail of ?
Yes, you can claim income tax exemption if you are a co applicant in a housing loan as long as you are also the owner or co owner of the property in question. If you are only person repaying the loan, you can claim the entire tax benefit for yourself (provided you are an owner or co-owner). You should enter into a simple agreement with the other borrowers stating that you will be repaying the entire loan. If you are paying part of the EMI, you will get tax benefits in the proportion to your share in the loan.
Q- 8. I have two housing loans on two different properties. Can I get tax rebate under sec 80 C of both the loans?
Yes, you can get the 80C benefit on both loans. However, the total amount that you will be entitled to will be a total of Rs 150,000 (Rs. 1 Lakh up to A.Y. 2014-15) across both the homes.
The interest paid on a home loan is not directly deductible from your salary income for either of your flat loans. Income from house property will be calculated for each flat you own. If either of theses calculations shows a loss, this loss can be set off against your income from other heads. Please note with effect from financial year 2017-18 Govt has restricted the limit of set off of loss from house property against other heads of Income to Rs. 2 Lakh. Till financial year 2016-17 there was no restriction and assessee was allowed to set-off any loss from house property against other heads of Income. Please note the restriction is placed on set-off of losses and not on the amount of home loan interest that can be claimed as a deduction under Section 24 for a rented house property, the losses which could arise on account of such interest repayment can be set off only to the extent of Rs 2 lakhs. Such loss in excess of Rs. 2 Lakh can be carried forward for upto 8 Assessment Years succeeding the year of loss and can be set off against Income under the head House Property.
As for Section 24 deduction, on your self-occupied house you can take advantage of interest payments up to Rs.2,00,000 (Rs. 1.50 Lakh up to A.Y. 2014-15). For the other property, you can claim actual interest repaid, there is no limit for the same.
Q- 9.I live in Delhi in my own house. In 2011, I took a housing loan to fund the purchase of an under-construction flat in another city (Faridabad which comes under National Capital Region of Delhi but otherwise falls in Haryana). It is expected to be completed in FY 19. I haven’t claimed any tax benefit so far. What happens to the loan installments I have paid so far? Can they also be claimed for tax benefit?
According to the Income-tax Act, 1961, where the property has been acquired or constructed with borrowed capital, the interest payable on such capital for the period prior to the year in which the property has been acquired shall be allowed as deduction in five equal instalments beginning from the year in which the property is acquired. Thus, the interest included in the loan instalment paid by you during the construction period shall be eligible for deduction from the year in which the flat is acquired/construction is completed.
The principal amount of the loan repaid till date shall not be available as a deduction under section 80C till the time the construction of the flat gets completed. Once the flat is completed and the possession is handed over to you, you will be eligible to claim deduction for interest paid on the loan under section 24(b) and principal amount of loan under section 80C. The total amount of deduction available under section 80C shall be limited to Rs. 1.50 lakh (Rs. 1 Lakh up to A.Y. 2014-15). Thus, as of now, you are not eligible for any tax benefit on such loan repayments.
Q. 10 Is there any additional deduction which I can claim in respect of Interest on Housing loan in addition to interest Under Section 24(b)?
Ans. Finance Minister inserted a new section 80EE relating to the additional deduction in respect of interest on loan taken for residential house property. Assessee can avail the benefits of this section in A.Y. 2017-18 & subsequent assessment years till the loan is repaid. Purpose of this section is to promote house ownership & give a fillip to a number of industries like steel, cement, brick, wood etc. besides jobs to thousands of construction workers. to get more information on the please read the Full Article – Section 80EE Income Tax Benefit on Home Loan Interest
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Things you must know about tax benefits on home loan
1. Home loan borrowers are entitled to tax benefits under Section 80C and Section 24 of the Income Tax Act. These can be claimed by the property’s owner.
2. In the case of co-owners, all are entitled to tax benefits provided they are co-borrowers for the home loan too. The limit applies to each co-owner.
3. A co-owner, who is not a co-borrower, is not entitled to tax benefits. Similarly, a co-borrower, who is not a co-owner, cannot claim benefits.
4. Housing companies usually require all co-owners to be joint borrowers to a home loan. Loan providers specify who can be a joint borrower for a home loan.
5. The tax benefit is shared by each joint owner in proportion to his share in the home loan. It’s important to establish the share for each co-borrower to claim tax benefits.
6. The certificate issued by the housing loan company, showing the split between principal and interest for the EMIs paid, is required for claiming tax benefits.
(Republished with Amendments)
I want to take a home loan to construct a house in a plot which is in my father’s name. my father is dependent on me. I am staying outside in a rented house. shall I get tax benifit on principal. And shall I get tax benifit on interest I shall pay as there is a statement that interest benifit is given after possessing the house as I am not possessing the house.Is it possible to build the property in my name and get tax benifit. Am I eleigible for HRA tax rebate also?
I have purchased a flat in Cinchwad Pune and iam currently staying in that flat. Iam claiming both interest(under section 24) and principal(under section 80c) currently. Recently i have purchased one more flat in chinchwad Pune and this is a joint loan with me and my wife. I have already started paying interest and principal BY EMI for this new flat. can i claim interest & principle of this new home loan for Tax.
I have purchased a flat in Bangalore and iam currently staying in that flat. Iam claiming both interest(under section 24) and principal(under section 80c) currently. Recently i have purchased one more flat in Bangalore and this is a joint loan with me and my wife. I have already started paying interest and principal BY EMI for this new flat. This flat is under construction and will be ready only by 2014 end. How do i claim interest/principal for this 2nd flat? please help
Sir,
I have taken housing loan from Bank. The flat is handedover to me by the Builder in 12/2011. I have not occupied and i want to give it for rent. But, I could not give my flat for rent upto the month of 11/12. Whether I can claim IT exemption on housing loan interest under section 24 as well as HRA exemption?
I have bought the flat in Pune in resale in the year 2010. My agreement is dated March 2010.
I have taken loan for this. I had taken the possesion in the same month itself. Can I avail the benefit of tax exemption in the current year i.e. FY 2012-13 ?
sir,
iam applicant for home loan and my wife is co applicant.
we are paying back loan but ratio is not fixed who will pay how much,money is deducting from my account. can both of us claim for tax benefit in any ratio.
for ex intrest deducted this year is Rs 200000 i can take benefit of 150000 rest wife.
and principal is Rs 100000 i can take tax benefit of 50000 and she can 50000
I have a taken home loan from my office and repayment total loan and taken tax benefit. Now I want to take- second house loan from bank whether i will tax benefit.
Sir,
I have applied for a flat in mohali for which i took a loan whose pre emi interest is 15K and the house will be handed over to me in June 2013. Can I claim tax benefits now?If not now when and how?
Sir,
i have allotted a flat in greater Noida by greater noida autherithy in BHS12 flat scheme in year august 2010 and i have taken loan from bank for payment but still waiting for passession and i’m salaried person, my my accountant still not giving home loan benefit..,what is current rule and can i get tax benefit all that had paid previous year..
With regards
balwant singh
Hi,
I am the applicant and my father is a co-applicant for our housing loan.
But my father owns the property.
Can I get tax exemption? My company says I need to be owner or co-owner of the property.
please help me how do I get tax exemption as I am paying the money.
Hi
I have a house in Mysore, rented out, and i amy availing tax benefit on Principal and interest amount. Can the interest amount above 1.5L is eligible?
Now i got one more property in Bangalore and rented out. I stay in rented house. Can i also avail tax benefit on this along with my 1st property and still stay in rented house?
Appreciate your views and suggestions.
Thanks
I purchased 2nd flat in March 2012, in pune city. For income tax return filing purpose, how Resgitration, stamp duty can be treated/considered to avail tax benefits etc?.
Currently having 1st home loan.
Please shade some light on this.
I Have taken 1800000/-bank loan for purchase of builder house in noida which is under construction.can i claim tax rebate on interest before the possession of flat
Q. I had two flats. on both the flats my wife is coapplicant. In one flat i am residing and i clear my home loan. now i purchased another flat. Now i want to let out second flat .My first question is that can i get benefit of second home loan or treated as first only. 2.For giving rent can i registered my wifes name and so she can show this income is possible.
FAQ is too helpful in deciding the exemption ( owner / co-owner) u/s 24 of I.T ACT
Hi , I Have an apartment in A.P where my parents are staying which iam getting tax exemption on that, Recenty i booked an apartment in blore which is under construction, it will be completed by dec.
How to get the tax exemptions on both as i staying in rented house now, can i get the HRA also.
Thanks
Manoj
Hi,
I am in the process of applying for a home loan ( for house construction) and the property ( land) is in my wife’s name. However we are planning to apply for a joint loan and I shall take the full responsibility to repay the loan. Both of us are working individuals.
I understand the rule i.e. A co-owner, who is not a co-borrower, is not entitled to tax benefits. Similarly, a co-borrower, who is not a co-owner, cannot claim benefits.
But since I am repaying the loan and not a co-owner / owner, can I claim tax benefit by getting into an agreement whereby we ( me & my wife) agree that only I will claim the tax benefit or if there is any other way around to claim tax benefit.
Thanks
Kishore
We have purchased newly constructed flat & registation is in my wife name but the Home laon from HDFC is joint & i am co-applicant. EMI is being paid from her salary.
Can we claim interst benifit as 50:50. If not, if EMI is paid in ratio of 50:50, can i avail benifit of 50% interest besides property is in wife name?
Sir,
We live in a house which was purchased by my father in law. He is no more nd now the house is in my husband’s name. We wanna book a flat now in under construction phase. I get HRA benefit from my office. If we take loan for this house on my name, wl I be able to take advantage in income tax nd how wl it be calculated.
Dear Sir, I just got confused in statement “Interest can be claimed as a deduction under Section 24. You can claim up to Rs. 150,000 or the actual interest repaid whichever is lower. (You can claim this interest only when you are in possession of the house)”.
I have taken home and home loan both on my name and it is still under construction. Until it gets built fully I will be paying only interest. But according to your above statement, will I not be eligible for tax exemption under 24??
Thanks
Jaikrat Singh
Sir, I have taken a housing loan. The property is in name of my mother, she is dependent on me. I am the borrower of housing loan and am paying the complete EMI for the house. The house is occupied by my mother and not by me, since I am employed at a different location. Can I claim tax benefit on under 80C (Principal) and deduct interest from Gross salary showing it as “negetive income from Housing property”. Please suggest.
Dear Sir, myself and my wife have taken a joint home loan. We are paying the EMI through ECS from our joint bank account. If the interest component of our EMI in whole year is 3 Lakh ( or more) , can we both claim Rs 150000 individually under Section 24 ?
Dear taxfuru,
I have a query on home loan and incometax. We, two brothers bought a flat as co-owners and borrowed a loan as co-borrowers. Now we are re-paying the loan. We both have equally divided the EMI being paid. My brother is staying in the flat and I am staying in a different city. My brother pays rent to me. In this scenario, is the income tax benefits as follows:- 1. For my brother is this self-occupied property with ceiling on interest component to rs 1.5 lacs. 2. For my self, is this a rented property, with no ceiling on interest component for incometax exemption. Please clarify.
Dear Sir,
Hat’s of you for awesome service.
I have gone through the posting but none of them similar to my doubt.
I have home loan for self occupied property in Bangalore, this is eligible for Tax benefits.
2nd home loan I have taken as composite loan and purchased (June 2011) plot in same city Bangalore and yet to be constructed as I have 2 years time for construction. This is not a site/land loan (plot loan), if only land loan I don’t need to construct the house, until I clear the loan. Now in this case am I eligible to claim the total interest for tax benefit? This is not generating any income.
Could you please guide me on the same? Ton thanks
Dear Sir
please clarify the below query. one of my employee has one existing home loan for a house in which he lives. he took one more loan to buy a new house and the house is still under construction and that will not be ready to occupy before Mar’13. He plans to let out the property once it is ready to occupy. Right now he pays EMI (not pre emi).
Now please clarify, whether he is eligible to avail interest on housing loan for the new property loan, whether he needs to show the income from house property for the new house (even before possession)? please clarify.
What is the exemption( rebate) in interest ( bank+NSC+FD) for the F.Y. 2011-2012
Sir, I have a question. I am a Salaried person and pay IT from last 7 years. I want to know how much Cash can I keep in my Bank Account? How much White Money can I posses? I have bought a Flat too in this period, so is that considered part of this Amount? Thanks
sir,i had taken home loan of rs.1600000/- since jan-2011 i am paying emi for same.but yet i have not taken possesion of the flat.how can i claim for rebate home loan ?home loan deductions also not mentioned in form no.16.Can i directly claim with saral form for rebate? i am having bank statement of loan deduction.kindly send me proper info regarding this matter.thank you.reply fast.
sir,i had taken home loan of rs.1600000/- since jan-2011 i am paying emi for same.but yet i have not taken possesion of the flat.how can i claim for rebate home loan also not mentioned in form no.16.Can i directly claim with saral form for rebate ,i am having bank statement of loan deduction.kindly send me proper info regarding this matter.thank you.
Hello Sir,
Me and my wife is jointly taking a homeloan to buy a property. My question is 1) This will be the 2nd home loan for me and first for my wife. What benefit I will get? 2) if the house registration is done only in my wife’s name, But I am co applicant. Then will I get tax benefit?
Can you provide me the judgment which supports your view in case of joint-ownership of property the tax benefit can be claimed in the ratio of EMI/loan share being paid between coowners as have been mutually agreed upon.
Regards,
I have taken a home loan 8 yrs ago against which I have repaid a principal amount of 1.5
lakhs and an interest amount of 38000 for the year 11-12. The house is not self occupied.What is the amount that I can claim exemption for from the Income tax to be paid?
I have taken Home Loan FROM SBI. (12.5 Lakhs) Am co-applicant for Loan and am the installment paying every month. But house constructed on my wife name including flat and whole papers and owner ship is on her name. Am just co applicant for home loan and 100% loan re payment is doing by me.. whether shall i get Home loan tax benefit.. am working under Govt. of India…?
Dear Sir,
Pl clarify the followings
1. I have purchased a house . My wife First owner and I am co owner.
Taken loan and i am paying the installment. and claiming.
Now I want that i shoild pay rent to my wife and claim hra deduction. My wife will add rental income in her return. Further, my wife should pay EMI to banks directly or to me and than i pay to banks. So my wife should claim Interest deduction. Whether it is possible.
I have taken home loan of Rs.35,00,000/- & paying EMI from my account. My wife is a co-owener of property.I have claim income tax rebate Rs. 1,50,000/- under section 24 & Rs.1,00,000/- under section 80c.
Now Can my wife claim same income tax rebate as above seperately with above same limit.
Pls advice me on the following. I have 2 flats: No1 flat was taken posession of in 2007 and regd jointly with my wife.Loan is taken jointly.Status of this flat is self occupied. Till last FY my wife was not working so I was claiming 100% benefit on int as well as principal component.In FY 11-12, she has begun to work and contributing towards EMI Can she take benefit of int and principal component in the ratio in which she is contributing from this AY onwards?
Ques no 2: Posession of my second flat was taken on 30 Mar 2012. Since I am showing the first flat as self occupied, the 2nd one will be deemed to be genr income as per IT rules.My ques is that since I have taken posession only on 30 Mar : what is the deemed income that i should show? Will the flat be deemed to have genr income for only one day or will it deemed to have genr income for the entire year despite my having had posession of it for only one day in that year?
I have a home loan in my name.I plan to buy another house & take a loan jointly with my brother as coapplicant. Can both of us claim the tax rebate on the second house? I am presently residing in the first house, after we buy the second house I will shift there. Can I still claim tax rebate on first house ?
I and my wife both taken housing loan (Both are working and salaried) Can both claim deduction of home loan intrest U/S 24 i.e. it implies together it can be claimed deduction upto 150000/-+1,50,000/- = Rs. 3,00,000/-
i want to know about my HBA dedection how can i get return of my HBA dedection
Hi, (1) I own a house in Mumbai which is a “self occupied” and availaing Tax benefits against Home loan taken on it (2) Now I have now invested in a new house in Gurgaon which is “under construction” and paying Pre EMI against the Home Loan taken, I intend to let it out once ready…….My questions are (1) Once the second home is ready and occupied, Understand I can claim tax benefit on the actual interest paid in the Financial year + 20% of the Total Pre EMI paid over the construction year (after splitting the total Pre EMI in 5 years), if I let it out after decuting 30% as SD and other municipal charges and maintenenace charges related to the house…Is it correct that the understanding is correct here and there is no limit to such a claim… (2) I stay in Noida in a rented accomodation…..Is it possible that I am entitled to claim benefit of HRA too in addition the self occupied property at Mumbai and let out property in Gurgaon..
?
Myself and mywife are join owners of a property which is wholly let out.
My wife is non-working.
Can I claim benefit of income tax considering half of rental income(assuming other half is given to my wife) and complete EMI interest ( assuming whole EMI is paid by me)?
My home loan eligibility is 30 lakhs and i am planning to buy a plot worth 45lakhs . i am planning to take home loan for plot purchase under SBI reality of 29lakhs and remaining from my other sources. after a six months of time am planning to avail 1lakhs home loan for house construction and procuring remaining money from my own sources . My question is whether i will eligible for tax benefits if i complete both purchse of plot and construction in this financial year 2012-2013.
Thanks.
I am planning to take an house on lease to arrange the fund for this I am planning to take personal loan from a bank, can I get any tax deduction on the principal and the interest paid on this personal loan.
I have a home inherited, in which i am staying (My name is also included as joint owners with parents). Now i have Purchased my own home on Loan. Now i am confused.
1. Is the purchased house is first home or second home
2. Since i am not staying in the newly purchased one, will i get TAX Exemption ??
Rahul Sharma
Dear Sir,
I have taken site come construction loan & paying the EMI (ntrest & principle). Also I am currently living in a rented house. Am I eligible to get the tax weiver on both HRA & home loan interest for the same financial year. – 2012-13 .pl…suggest me.
I had booked a house with the builder in January 2008, taken possession in July 2009 and registered it in my name in september 2009.
Due to some exigency I have now to sell the house which was purchased by taking a housing loan.
Please clarify whether in this case Short Term or Long Term Capital Gain will apply?
Also,I have been told by some people that the benefits which I had taken under section 24 and section 80c on the principal and interest in my earlier IT returns will have to be reversed in my current IT return and I will have to pay tax on that amount in the current year.
Pls clarify
Sir,
now i am constructing house and this will complete at the end of september 2012. but i got home loan for corporation bank from 7th march and thy deduct pre EMI interst. but my EMI may deduct for september 6th 2012 onwards. In that case in this tax academaic year( april 2012 to march 2013) i am eligible for tax benifits or not. Please informe me.
Regards,
S.Nagaraja
Assistant Professor
KCT
irrespective of the number of houses is the overall limit Rs. 15. lakhs under section 24[b]
Dear Sir,
Me and my wife are the co borrowers and repaying 50% each. Both are working.
How can I claim both HRA and benefit of sec 80C and 24.
Kindly put me a mail at my email id also.
Mahesh
Case: I have an existing residential property in name of myself and wife (share not defined). I am purchasing new residential property and required to decide ownership patter for the same.
Should I register new property in my name only? Or again jointly with wife?
Housing deduction and benefits is required for me and not for wife.
I am evaluating two options and request to suggest the better one considering income tax , wealth tax and capital gain taxes and stamp duties applicable.
Option One: Registering new property in my name only: I will claim this new property as deemed to be let out and will set off full interest against my salary till interest component is high. Now after years when interest will be negligible, I will transfer 50% share in current house to my wife. Now I will be absolute owner of new property and my wife will be absolute owner of existing owner and both property will be exempted from income tax, wealth tax. I will be required to pay 50% stamp duty for this transfer and also transferring 50% share without consideration will still make me deemed owner of existing property. But I will try to show some consideration or will transfer at market value to avoid capital gain. Please evaluate this option?
Option Two: Registering new property jointly with wife: I will claim this new property as deemed to be let out and will set off full100% interest against my salary till interest component is high. Will I be able to take benefit of full interest though I am 50% owner? I will be paying full EMI and interest and will I be able to claim 100% interest?. Now after years when interest will be negligible, I will transfer 50% share in current house to my wife and in consideration she will transfer 50% share in new house to me . Now I will be absolute owner of new property and my wife will be absolute owner of existing owner and both properties will be exempted from income tax, wealth tax. Will transferring shares to each other for consideration at same time exempt capital gain? I need to pay stamp duty on the property(50%value) whose Market Value is more?
Please share opinion as to which option is good to follow. Also requesting to answer the questions asked in between those options.