Pls guide whether Loan Interest paid during FY 2013-14 will be available as deduction while calculating Income from House Property? It is to be noted that person had sold property on 20.03.2014.
(2) Dedcution of Principle Portion of Loan:
Pls clarify also whether deduction of Installment (Principle Portion) will also be available as dedution in above example.
Benefit of deduction of interest can be claimed (subject to maximum limit in case of self occupied property) against income from house property.
As far as principal amount is concerned, you may deduct u/s 80C against gross total income provided possession of the house property has been completed 5 years from the end of the year in which property was possessed (as the H.P already sold on 20-03-2014)
It is noted here, benefit of deduction u/s 80C can be claimed only by Individual and HUF subject to maximum limit (cumulatively)as prescribed u/s 80C.
Yes you can claim both only if flat was self occupied by you & it was under your possession for 5 years from end of the fina. year in which you bought the same so as to not adding back amount allowed as exemption.
24 February 2015
Income from house property is taxable in the hands of its owner, even if he is not in receipt of income from such property. Owner means the legal owner. However, it also includes deemed owner.
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