Whether housing loan interest and principal allowed on loan

This query is : Resolved

pankaj (Querist)
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05 March 2013 Hello,
I would like to know if the Housing loan Interest and Principal repayment is exempt while the property is underconstruction and the possession is not yet taken.

whether it can be considered for deduction under the head Interest on Housing loan.

regards

pankaj

CA Prashant Gupta

CA Prashant Gupta (Expert)
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05 March 2013 80C will be available on loan repayment
for interest it will be allowed in 5 equal installments from ther year when construction is complete 24(b)

pankaj

pankaj (Querist)
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05 March 2013 hello,
thanks sir for your reply i further had a query on the same issue.

1. Whether the principal amount can be claimed in the same financial year u/s 80C or it would be also differ.

2. The interest Component would be in addition to the next year instalment of interest.

e.g. interest paid in 2012-13 - Rs. 220581/-
principal - Rs. 32382/-

Whether the Princpal Amount can be claimed as deduction in the A.Y. 2013-2014

and the Interest which would be roughly equated in Rs. 30000/- eligible in A.Y. 2014-15, 15-16,16-17,17-18,18-19.

Can I get the notification for claiming principal deduction under 80C while the property is under construction.

regards

pankaj

CA Mahavir Shah

CA Mahavir Shah (Expert)
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05 March 2013 Principal amount on repayment of housing loan can be claimed in the same financial year.
But pre-construction period interest can be claimed in equal 5 installments from the year of end of construction.

pankaj

pankaj (Querist)
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05 March 2013 thanks