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Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on Mar 09, 2023

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more
Asked by Anonymous - Mar 08, 2023Hindi
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Hi Sir we are planning to go ahead with a flat whose value is 3.35 crores in cheque. We plan to pay around 1.5 crores from savings and balance in loan. Recently my father who is 80 years old sold a property in Pune and has got 71 lacs for the same. We need to invest this money in the new flat for Capital Gain purpose and also as a part of the 1.5 crores down payment. Balance all payment will be made by three of us. Primarily me and my wife and also my son. Since I am 53 years old and my wife is 50, my bank asked me to add my sons name also. My question is : Do I have to buy the flat with my father as the first name or can he be a joint/ second name? My question comes from the fact that I will be paying back most of the loan from my salary.

Ans: Your father can be at any order in the property holding (first, second, anything…). His contribution in percentage terms will be counted as his share of the property.

Let us say, out of the Rs 71 Lakhs of the sale price, the Long Term Capital Gains is Rs 33.5 Lakhs and that is the one which is invested as his contribution in the new property that you are buying. So he saves complete tax on LTCG, and his share in the property becomes 10% as 33.5L is 10% of 3.35 Crores.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Mahesh

Mahesh Padmanabhan  | Answer  |Ask -

Tax Expert - Answered on May 20, 2023

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Sir, On 14-June 1994, I acquired a flat (tenement) in my own name for Rs. 2,98L. In April 2015, I had to spend Rs. 4.15L on general renovation of this flat. Now, I plan to sell this tenement and wish to invest its sale proceeds within two years of the sale in buying a ready possession flat in another city. My queries are follows: 1. Can I invest the sale proceeds in buying two flats in the same society of the new city or do I have to necessarily invest in one property only? 2. Can I add the name of my spouse and my son also as co-owners in the new property(s) even if their financial contribution is nil? 3. Can I add the name of my spouse and my son also as co-owners in the new property(s) in case they also partially contribute financially in the purchase of the new flat(s)? 4. What is the present applicable Indexed Cost of the flat planned to be sold by me?
Ans: Hi Thomas
As the base year for Cost Inflation Index (CII) has been reset to 2001, you may need to get a valuation done through an approved valuer to identify the value as on April 1, 2001. If this value is higher than Rs. 2.98 Lakhs then you could use that as the cost.

As regards the general renovation amount spent, it may not be allowed to be added as cost of the property as generally tax officers are not dispensed to allow it.

W.R.T. your decision to reinvest in a ready possession flat within 2 years, please note that if this investment is extending beyond 6 months OR due date for filing your tax returns (whichever is earlier), you would need to open a Capital Gain Account Scheme (CGAS) account with a nationalized bank and park the capital gain amount in it for reinvestment.

Now answering your queries

Query 1 - If the capital gain amount does not exceed Rs. 2 Crores then you could reinvest in 2 residential units. This however is a one time option and cannot be used again in any other year.

Query 2 - Yes you could add their names but they would be treated as name-sake owners and for all purposes of taxation, you would be taxed singly.

Query 3 - You can add their name as proportionate owners to the value of their contribution. The taxation of income in that case would be based on their contribution

Query 4 - The answer to this would depend on the valuation report. Nevertheless, you could derive the indexed cost yourself by multiplying a factor of 3.48 to the cost. An example would be as follows:

Suppose the cost is Rs. 2.98 Lakhs
Indexed cost would be Rs. 2.98 Lakhs x 348 / 100 OR 2.98 Lakhs x 3.48 = Rs. 10.37 Lakhs

..Read more

Ramalingam

Ramalingam Kalirajan  |7026 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 10, 2024

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Money
My father is having Rs.1.00 cr from sale of his 1 BHK (purchased more than 3 yrs before) and want to purchase new 2 BHK house for Rs.1.60 cr. For the short fall amount, I intend to take loan of Rs.0.40 cr and having saving of Rs.0.20 cr. We want my father's name on new 2 BHK as 1st joint owner and my name as 2nd joint owner. This way, my father can save capital gains tax and I will be able to take tax benefits of housing loan interest and principal. Kindly advice on my plan.
Ans: Your plan to buy a new 2 BHK house with your father is a smart move. You are leveraging both your and your father’s resources effectively. Let’s dive into the details.

Current Financial Snapshot
Your Father's Finances
Sale Proceeds: Rs.1 crore from selling 1 BHK
New Purchase: Rs.1.60 crore for a 2 BHK
Capital Gains: Aim to save tax on these gains
Your Finances
Savings: Rs.20 lakhs
Loan Requirement: Rs.40 lakhs
Joint Ownership: First owner your father, second owner you
Evaluating Your Plan
Capital Gains Tax Benefits for Your Father
Buying a new residential property within the stipulated time frame helps save on capital gains tax. Your father sold his 1 BHK and plans to buy a 2 BHK. This is a good strategy to reinvest the gains and save on taxes.

Joint Ownership and Tax Benefits for You
By making your father the first joint owner and yourself the second, you can avail tax benefits on the housing loan interest and principal repayment under Sections 24(b) and 80C of the Income Tax Act.

Analyzing the Loan Requirement
You need a loan of Rs.40 lakhs. Ensure that you are eligible for this loan amount based on your income and credit score. This loan will help bridge the gap and make the purchase possible.

Detailed Financial Plan
Investment Strategy for Your Father’s Proceeds
Utilizing Rs.1 Crore: Invest the entire sale proceeds into the new 2 BHK to save on capital gains tax.
Loan of Rs.40 Lakhs: Secure a home loan to cover the shortfall.
Leveraging Your Savings
Use your savings of Rs.20 lakhs towards the purchase. This reduces the loan burden and associated interest costs.

Ensuring Loan Eligibility
Check your loan eligibility based on your income. Ensure your credit score is healthy to get the best interest rates.

Tax Benefits and Savings
Principal Repayment: Deduct up to Rs.1.5 lakhs under Section 80C.
Interest Repayment: Deduct up to Rs.2 lakhs under Section 24(b).
Execution Steps
Finalizing the Purchase
Property Registration: Register the new 2 BHK in both names as planned.
Loan Sanction: Apply and get approval for the Rs.40 lakhs loan.
Managing Finances Post-Purchase
Loan Repayment Plan: Set up a repayment schedule that suits your income flow.
Tax Declarations: Ensure you declare the loan details for availing tax benefits.
Risk Management
Insurance: Consider getting home loan insurance to cover the loan amount in case of any unforeseen events.
Emergency Fund: Maintain an emergency fund to manage any financial hiccups during the repayment period.
Long-Term Considerations
Property Appreciation
The new 2 BHK is likely to appreciate in value over time, adding to your wealth. Ensure you maintain the property well.

Retirement Planning for Your Father
Ensure your father’s financial security. The property should serve both as a tax-saving tool and a secure asset for his future.

Financial Security for Your Family
Joint ownership ensures both you and your father have a stake in the property. This provides security and peace of mind.

Power of Compounding
Invest any surplus funds into mutual funds for long-term growth. The power of compounding will help grow your wealth.

Mutual Fund Investments
Equity Funds: High growth potential but comes with market risk.
Debt Funds: Stability and regular income.
Hybrid Funds: Balanced approach with equity and debt.
Actively Managed Funds
Actively managed funds are handled by professional managers. They aim to outperform the market with strategic investments.

Final Insights
Your plan to buy a new 2 BHK is solid. By leveraging your father’s proceeds and taking a loan, you are making a smart financial decision. Ensure you:

Utilize Capital Gains: Invest proceeds in the new property to save tax.
Leverage Tax Benefits: Maximize deductions on loan repayment.
Plan Finances: Manage loan repayments and maintain an emergency fund.
Invest Wisely: Consider mutual funds for long-term growth.
Your proactive approach and thoughtful planning will lead to a successful financial outcome. Stay disciplined and monitor your progress regularly.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Dr Shyam

Dr Shyam Jamalabad  |78 Answers  |Ask -

Dentist - Answered on Nov 14, 2024

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Health
Dr. Shyam, I had my teeth cleaned 6 months ago and after that was done I saw discoloration on certain teeth that wasn't there before. Years ago I had my teeth cleaned and one particular tooth after the cleaning was sensitive to touch. I had a crown put in from two different dental offices. The first one did the crown right, but was trying to charge me $3,500 more than the agreement they made with Medicare. Medicare corrected that. I other dentist did a crown and it didn't go all the way up to my gums and is sensitive to especially cold things. I'm not having very good experiences with dentist by and large. Can't find an honest one or one that can actually do the job right. I feel being on Medicare your a target to bring in money. Not sure what to do next. Supposed to go back and have them redo the crown that didn't go to my gums, but it also was ttd place to didn't clean my teeth right and discolored some of them. Any suggestions on how to trust there is actually an capable and honest dentist out there who can perform properly?
Ans: Identifying a capable and honest dentist is crucial for your oral health and well-being. Here are some tips to help you find one:

1. Ask for referrals: Ask friends, family, or coworkers for recommendations. They can provide valuable insights into a dentist's work quality and bedside manner.

2. Check credentials: Ensure the dentist has the necessary qualifications, certifications, and licenses. You can verify this information with your state's dental board or professional organizations like the American Dental Association (ADA).

3. Check online reviews: Look up the dentist on review platforms. Pay attention to the overall rating and read the comments to understand the strengths and weaknesses. At the same time, do not rely on reviews alone as these can be manipulated, fake reviews can be easily generated.

4. Evaluate their communication style: A good dentist should listen to your concerns, explain procedures clearly, and answer questions patiently. Ensure you feel comfortable asking questions and discussing your treatment.

5. Assess their facility and equipment: A well-organized and modern dental office with up-to-date equipment is a good sign.

6. Check their approach to preventive care: A capable dentist emphasizes preventive care, including regular cleanings, exams, and education on oral hygiene.

7. Be wary of over-treatment: A honest dentist will not recommend unnecessary procedures. Be cautious if you feel pressured into extensive treatments.

8. Trust your instincts: If something feels off or you don't click with the dentist, it's okay to explore other options.

10. Schedule a consultation: Many dentists offer initial consultations or meet-and-greets. Use this opportunity to assess their approach, ask questions, and gauge your comfort level.

By following these steps, you can increase your chances of finding a capable and honest dentist who prioritizes your oral health and well-being.

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Ravi

Ravi Mittal  |416 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 14, 2024

Asked by Anonymous - Nov 03, 2024Hindi
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Relationship
Hi, I am 30 years old not married & now my parents are forcing me to get married. I think i am good looking guy. It's not like i have never been with girls. I have had brief flings with multiple girls. And there was one girl whom i was in a platonic relationship with with lot of emotional sharing & have spent a lot of time with her. The same goes with another girl. Both of them have told me that i have been pretty cool & girls would like me to be their bf or husband. But i am not able to accept anyone because of the guilt that of my past that i never had a relationship. Never been able to tell anyone that i had a gf. I know this is wrong to compare my life but i can't stop thinking that way. Can you tell me what to do? Like a contsant regret of not having a very steamy cool fancy relationship from outside. I know relationships have it's own ups & downs. But this guilt is killing me that i missed out lot of things in life & if get married in an arranged marriage i would feel myself to be a looser who couldn't even find a girl on his own. Though i know all of these comparisons are wrong & i should be rational. I am not able to help it. Please help me out
Ans: Dear Anonymous,
Whatever you are feeling, it is very normal. More people than you could imagine go through this same phase. But as you mentioned, these are just thoughts; there is no truth to them. Not having a relationship does not make you uncool. It merely means that you did not meet your perfect match yet. I understand that you feel like you have missed out on something and that feeling is valid. It might not be reasonable, but it's very natural to think this way. I can suggest one thing- why don't you try a dating or matchmaking app to find your own partner? That way, you will be keeping your parents' wishes and won't let yourself down either. It will also give you more control over choosing your life partner.

Hope this helps.

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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