It deduction for 2014-15 for home loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2015 Dear Sir, I had taken a home loan in Nov 2014 and property was registered in December 2014 and first emi for loan started in january 2015. My bank has given me IT CERTIFICATE for financial year 2014 – 15 is Rs 131083 /- ; whose breakup is as follows ; Principal component : Rs 9161 /- Interest component : Rs 121922 /- The property is to be let out not already let out.
1-How I can show my it deduction for financial year 2014 – 15 ?
The property is a RESALE OF INDIVIDUAL HOUSE NOT A BUILDER PROPERTY.
2-Do I really need POSSESSION / OCCUPANCY letter fo claiming it deduction as the Chief account officer of MY employer is asking for POSSESSION/OCCUPANCY letter aswellas FORM 12C in addition to IT CERTIFICATE (PROVISIONAL).
PLZ PLZ ....SIR/MADAM HELP ME AS SOON AS POSSIBLE FOR WHICH I WILL BE OBLIGED.
THANKING YOU IN ADVANCE.

kamlesh

kamlesh (Expert)
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26 February 2015 Read section 24

CA Anjana Grover

CA Anjana Grover (Expert)
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26 February 2015 Hi,

In case of any income, other than salary you need to fill & sign Form 12 C for the same & submit along with the Investment proofs.

As per the facts i think that your property is under construction right now & thats why your employer is asking for possession and certificate of ownership.

The follwing paragraphs will enhance your understanding :
Can you claim tax benefits for home loan taken for under-construction house ? A lot of investors assume that they can claim tax deductions and without doing much research, they go ahead with the loan. However they should know the fact that claiming tax in case of under-construction house is different. You cannot claim the tax deductions for the principal amount for under-construction house. You need to have possession and certificate of ownership to claim tax under 80C. However Interest part is little different. You can not claim the interest amount, unless you get the possession of house . However you can always claim the deductions later in 5 equal installments for next 5 yrs from the end of financial year of possession.

Since you are asking for deduction of principal sum of Money on loan which will be considered only under head income from house property (which is other than salary)to allow the deduction for the same by your current employer. Thus you need to furnish form 12C as verified by you. You can find it on google.

Regards

Querist : Anonymous

Querist : Anonymous (Querist)

27 February 2015 THANK YOU ANJANA MADAM,
BUT THE THING IS THAT IT IS A OLD FULLY COMPLETED INDIVIDUAL PROPERTY OF 10 YEARS AND NOT A BUILDER PROPERTY.
ITS OK THAT I HAVE TO FURNISH FORM 12C BUT HOW COULD I GET POSSESSION AND CERTIFICATEOF OWNERSHIP ?