Deduction u/s 80 C for Principal amount of Housing Loan

15 September 2009

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??

With Regards,

Dipendra Panta.

Aditya Maheshwari (Expert)
15 September 2009

Interest under the construction period can be claimed in 5 instalments from the year of completion

Manmohan ACA, CS (Expert)
15 September 2009
he can take deduction for principal repayment u/s 80C ,
Note that condition is house loan repaid, not house purchased/ construsted and house loan repaid

SO take deduction

B.Chackrapani Warrier (Expert)
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.

15 September 2009
Agree With B.Chackrapani Sir, Deduction not allowed.

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