Additional house loan interest deduction

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2013 As per Section 80EE a first time buyer of house would get additional interest deduction of 1 lac if a housing loan is sanctioned between 1st Apr'13 to 31st Mar 2014.

My query:
Can a person who is a first time buyer and whose hosing loan has been sanctioned in Feb'2013 is entitled to get this benefit if the loan is taken over now by an another bank?

Please advise on this.

Regards

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

05 July 2013 1. Sub-Section (3)(i) The loan is required to be sanctioned between 1-4-2013 to 31.3.2014.
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2. Now, just to get benefit U/s 80EE changing the bank is a costly affair.
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3. Secondly, Sub-Section (3)(iv) puts a restriction by stating that the assessee does not own any residential house on the date of sanction of loan.
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4. Condition 3. is the toughest condition to comply when the assessee had already get first sanction on the very basis of ownership.
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5. On the basis of above, he will not get
the desired benefit.
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Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2013 On the date of the assessee does not hold the 1st house.

Under this condition can he get the benefit by means of loan takeover.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

05 July 2013 The house should be the only house , so question of 1st or 2nd dose not arise.
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The date i.e. Feb 13, of the first sanction is out of range.
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When the loan is takeover then ,in my view, sanction date of new loan may be considered but by this time, the assessee would have become the owner of the house. Before sanction assessee should not be the owner of the property as per Section 80EE(3)(iv).
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