Loan repayment

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naman (Querist)
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22 September 2011 housing loan repayment on purchase of commercial building is allowed as deduction u/s 80c or not. what if loan is taken to purchase residential bldg for investment purpose but not to reside in it.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 September 2011 1) Deduction under section 80C (2) (xviii) can't be availed for 'commercial building'.
2) The deduction under the above referred section can be availed though the residential building is for investment purpose. However, pl bear in mind that the rationale behind the section is to promote residential housing facilities to Indian citizen's.

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