i want to know about sec. 88

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Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2011 i see sec.88 in bank loan yearly statements. what is that sec. ?

thanks

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

02 March 2011 It was a rebate from the income tax due for an individual / HUF assessee @ 20 % on certain specified investments made by them. This section is inoperative w.e.f.1/04/2006 by virtue of the provision of The Finance Act,2005.

Querist : Anonymous

Querist : Anonymous (Querist)

02 March 2011 any housing can get benefit of sec. 88.but which loan when i show that certificate nothing different than other hp loans.

so what is the difference bt 80C deduction & 88.

Please explain sir.more

thanks

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

02 March 2011 Section 88 is now no more effective.

Housing Loan repayment qualifies for deduction U/s 80C only.

In Section 88 tax rebate was allowed. Means we have to pay lesser tax by the amount of rebate.

Whereas U/s 80C first Gross Total Income is reduced and then on such reduced amount tax is being calculated.

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