House Property

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obeid (Querist)
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02 August 2010 A individual sells his House on FEB 2010 before completion of the loan. My question is,
Can he claim the interest paid during the year as Loss from House property & Principal U/s 80C?

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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02 August 2010 IF HE HAS SOLD HOUSE AFTER LOCKING PERIOD.

THEN HE CAN CLAIM INTERST PAID UPTO DATE OF SALE AS LOSS FORM HOUSE PROPERTY AND PRINCIPAL U/S 80 C.

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obeid

obeid (Querist)
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02 August 2010 Locking period? Please explain

Thanks

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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02 August 2010 locking period is 5 years

Reverse Of section 80C benefits

One more point ,I would like to point out here that as Per section 80C ,if a person is claiming House loan repayment benefit under section 80C and have sold the House within 5 years from purchase of the house then all the benefit availed under this section (80C) will be reversed and included in the taxable income of the year in which house has been sold.
In you case you have purchased house in March ,2006 and sold the same in Jan,2010 means before the expiry of the five years from the purchase of the house , so tax benefit (if any ) on repayment of house loan)availed by you under section 80C ,In Financial year 2006-07,2006-08,2006-08 will be revered in Financial year 2009-10 and no benefit in Financial year 2009-10 in respect of old house .So keep this point in Mind

https://www.simpletaxindia.org/2010/02/capital-gain-house-sale-reverse-section.html

obeid

obeid (Querist)
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04 August 2010 Thanks sir

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