21 May 2015
Sir, if am claiming deduction u/s 80 c in respect of principal of house loan. And if I sell this house before period of 5 years does the principal repayment of house loan which was allowed earlier as 80c deduction is taxable ? If yes, under which head of income
21 May 2015
Section 80C(5) also states that in case the assessee transfers the house property on which he has claimed tax deduction under Section 80C before the expiry of 5 years from the end of the Financial Year in which the possession has been obtained by him, then no deduction and tax benefit on Home Loan shall be allowed under Section 80C. The aggregate amount of tax deduction already claimed in respect of previous years shall be deemed to be the Income of the Assessee of such year in which the property has been sold and the Assessee shall be liable to pay tax on such income.
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