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80 C Deduction

nibinajay (nothing) (124 Points)

29 March 2018

Whether assessee eligible to claim deduction under 80C If he is paying principal amount of housing loan before the construction?

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CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 29 March 2018

Conditions to claim this deduction

To qualify for this deduction:

The home loan must be for purchase or construction of a new house property.
The property must not be sold in five years from the time you took possession. Doing so will add back the deduction to your income again in the year you sell.

YES, U CAN CLAIM

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nibinajay (nothing) (124 Points)
Replied 29 March 2018

if paying during the construction period ( not interest-- principal)

tripti (ca article) (209 Points)
Replied 29 March 2018

Originally posted by : NAVEEN CHAND
	Conditions to claim this deduction To qualify for this deduction: The home loan must be for purchase or construction of a new house property. The property must not be sold in five years from the time you took possession. Doing so will add back the deduction to your income again in the year you sell. YES, U CAN CLAIM

The home loan deduction can only be claimed from F.Y in which construction is completed. So, you can't claim deduction during the construction period.

Correct me Naveen, If i am wrong.

nibinajay (nothing) (124 Points)
Replied 29 March 2018

from many of sites I found that assessee is eligible to claim interest
but not principal during construction period.

is that right?

tripti (ca article) (209 Points)
Replied 31 March 2018

Interest during the pre construction period can be claimed as deduction over a period of 5 years in equal annual installmets commencing from the year of acquisition or completion of construction.