If any assessee has paid principal amount of Housing loan taken from Bank, but the House is not possessed yet, by the assessee. Can assessee take the benefits of Section 80C? Is there any condition relating to Possession of House property for availment of benefits of Section 80C??
15 September 2009
To get deduction for the principal portion of housing loan repaid under section 80C(xvi),one condition is the income from that house property, on which the loan is taken, is chargeable to tax under the head 'income from house property'. If that condition is to be fulfilled, necessarily the loanee should be the owner of the property. When does the loanee become the owner?. The house property should be completed and handed over to the loanee. Then when does the handing over is complete? It will be complete only when the loanee possesses the house property. So if the issue is viewed as above, I am afraid, the assessee may loose the benefit of section 80C of the Income tax act,1961.