To make a Gift Deed or Sale Deed

Question

I live in a house that have a share of my brother. I want to pay my brother share in cash by taking a Home loan. The house is in name of my father.

Now I am confused & blank about thinking that whether I should make a Gift Deed or Sale Deed for transfer of Flat from my father's name to my name, so that I can mortgage same of acquiring a mortgage loan or Home Loan.

Home Loan is more beneficial to me, as I get Interest on Home loan exemption on Income Tax & I would also be able to get Pradhan Mantri Awas Yojana Subsidy. I an in problem of loosing my house. Pls help me.

Answer 1

whether I should make a Gift Deed or Sale Deed for transfer of Flat from my father's name to my name, so that I can mortgage same of acquiring a mortgage loan or Home Loan.

Please consult a professional CA as there are multiple combination on this transaction can be done and each has its own considerations.

• If you register a sale deed, you will have to pay registration and GST tax. Get a home loan from Bank and pay your father half the amount. Your father can gift the balance your brother.
• As you brother to waive his rights on home, have your father sign a gift deed and transfer the house in your name. Get a "Loan-Against-Property"; pay your brother half the sum. Note you can't take the benefit of "Pradhan Mantri Awas Yojana" in this case. There is difference in opinion amongst CA's if this will be eligible for Income Tax exemption under Section 24.
• Register this as gift deed from your father on both your and your brother's name. Buy your brothers share via home loan. You would have to pay registration and GST on half the amount. You should be able to claim benefit on taxes.