Housing loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2011 Interest if on Housing loan is simple Interest, the assessee then first has to repay the principal. suppose borrowed principal was Rs.100,000.00 and interest thereon accumulated to Rs.60,000.00 (say equal per year) in 3years. in first year assessee repaid Rs. 50,000.00 towards the loan account. please tell its treatment in computation??????and is this ok-income u/h House Property=(20,000.00) and 80C deduction Rs.50,000.00.please tellll

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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28 July 2011 Yes. what ever interest payable & Principal during the year can be claimed as deduction ,so Rs.20000 as interest & Rs.50000 as principal can be claim. collect the certificate for the same from bank

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CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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28 July 2011 Yes no problem in the computation done by you.

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Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2011 please consider that the interest by Bank will be repaid after the full principal is repaid. so till that time we can take both deduction and after that there will be no interest charged by BAnk only interest repayment so no deduction after that....am i correct????//plz guide me........

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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28 July 2011 The best option for you will be to take a certificate from the bank regarding the loan.

And the amounts mentioned in the certificate as amount of principal and interest should be taken as deduction by you.

A

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 July 2011 The claim for interest under section 24 (b) is on due basis meaning thereby interest need not be paid every year to claim the deduction. So,if Rs. 50,000/- is repaid towards principal in an year, and interst due for that particular year ( as per certificate of lender)is Rs. 20,000/- then assessee's claim would appear as follows:-
a) deduction u/s 24(b) -- Rs. 20,000/-
b) deduction u/s 80C -- Rs. 50,000/-

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