Housing loan

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mahesh (Querist)
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28 May 2013 i have taken a housing loan for purchasing flat and now i am residing in the same flat. The loan which i had taken is from cooperative credit society. My query is that whether i can avail deduction u/s 80c for principal repayment of housing loan and u/s 24 for interest on housing loan. Thanks

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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28 May 2013 Yes. you are eligible to claim the principal payment under 80C & Interest payment under 24b. Loan taken from co-operative society also for the purpose of purchase or construction of house property also eligible for deductions

mahesh

mahesh (Querist)
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29 May 2013 thanks for your reply sir but my company's CA has not taken the deduction for calculation of tds on the ground that loan taken from co-op credit society does not qualify for deduction.

Suresh Mittal

Suresh Mittal (Expert)
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29 May 2013 Yes, the company's CA is right as far as repayment of housing loan is concerned. But for deduction u/s 24 for interest payment there is no restriction.

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 May 2013 Please refer the below extract from section 80C, Read the point no. (b)

(xviii) for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head "Income from house property" (or which would, if it had not been used for the assessee's own residence, have been chargeable to tax under that head), where such payments are made towards or by way of—

(a) any instalment or part payment of the amount due under any self-financing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis; or

(b) any instalment or part payment of the amount due to any company or co-operative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him; or

(c) repayment of the amount borrowed by the assessee from—

(1) the Central Government or any State Government, or

(2) any bank, including a co-operative bank, or

(3) the Life Insurance Corporation, or

(4) the National Housing Bank, or

(5) any public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes which is eligible for deduction under clause (viii) of sub-section (1) of section 36, or

(6) any company in which the public are substantially interested or any co-operative society, where such company or co-operative society is engaged in the business of financing the construction of houses, or

(7) the assessee's employer where such employer is an authority or a board or a corporation or any other body established or constituted under a Central or State Act, or

(8) the assessee's employer where such employer is a public company or a public sector company or a university established by law or a college affiliated to such university or a local authority or a co-operative society; or

(d) stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee,

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