Financial help to blood relations
My son and daughter in law together have booked a flat,they have taken housing loan, investing their own savings and wanted me to pay the balance. Is there any problem if i credit the amount direct into the builders account instead of crediting the amount to my son and then he paying it to the builder. more
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Do you want to pay as a loan, as part of property owner or gift the amount to your children. If you want to give the amount as part owner give the amount directly to the builder. Where as if you want to give the amount as loan or as gift to your children, give it into their account and then let them pay to the builder. Your accountant should be able to help you in making the relevant entries int he books of accounts. more
Jul 04
Mr Mohammed ji does it make any difference if I pay directly to builder on behalf of someone else of is it necessary to gift the amount?? Here you are suggesting gift because here is a relationship of father and son but where there is no relationship then what will you suggest? more
Jul 04
Government can Open Senior Citizen Account Of Retired Employees. Protect his future life by not treating FD returns like any Mutual fund. more
Jul 04
Since there is no tax liability for the son,I feel that it is better to give gift to the son, who in turn will pay the balance amount of his flat to the builder. This will be keep the deal between father and the son separate from the deal between the builder and the son. No confusion ! more
Jul 04
you can give a gift to your son and inturn he may pay this amount from his account to the builder. Amount given to son will be treated as gift which is not taxable. more
Jul 03
Amount received from father as gift is not taxable U/S 56(2) of the Income Tax Act 1961. I hope it will clarify the matter. more
Jul 03
Sasidharan ji you may be right for investment purpose but as far as housing laon is concerned then we shoud keep it in mind that housing loan is given on the basis of our income calculatios not on the basis of security amount as for security under housing loan, the property itself is mortgaged,no additional security is required. When the son and daughter-in-law have taken together housing laon then it is quite obvious that the income of both the spouses has been taken into consideration before approving the housing loan amount and also the value of the property value against which loan has to be given and no bank finances 100% amount of property so margin maoney or the difference value of laon amount and property value has to be paid by our own resources. If I invest my money in mutual funds or in any other fund as suggested by you then from where I will pay the difference amount of property? Here the father has to give the balance amount of property and that can not be funded through interest income from mutual funds. more
Jul 03
Dear Mr Puthucode Sundaram I had not deviated from the subject and I had already clearly replied you to pay the builder directly on behalf of your son and daughter-in-law. See my replies. There is no problem from taxation point. more
Jul 04
Absolutely there will be no problem. The only issue will be that at a later stage because of any family issues,you can not claim part ownership in the property just you have paid the balance to the builder. Also you should intTe the builder in writing that the amount which Re transferring is specifically against the flat your son & daughter in law had booked more
Jul 03
We have deviated from our main subject, I wanted to know of any problem if i transfer the amount direct to the builder on behalf of my son from my account. more
Jul 03
