Query on housing loan

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Unnikrishnan B (Querist)
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14 September 2016 Sir, I am working in a nationalised bank.In the case of Housing loan the normal procedure followed by us is up to the date of completion of construction only interest is charged and afterwards EMI starts In EMI the complete amount of EMI is transferring(apportionment) to principal.so interest gets accrued and reduced every month only. say If EMI is Rs 20000/- and interest accrued is Rs2000/- EMI Rs20000/- is apportioned to principal .this is a fact and I am sure about it. so can the customer gets deduction Rs 20000*12(subject to the limit 80C )? and interest accrued monthly 2000*12 (24b )(hypothetical interest gets reduced every month as principal gets reduced following the daily reducing balance method). or Rs20000*12 includes 80C and 24b (Overall deduction ) . as far as I know income tax act never specifies the point of payment of interest. I hope I have conveyed the matter clearly.this query I have made for the general benefit Kindly reply

S. Harsha

S. Harsha (Expert)
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14 September 2016 Sir,
If the emi is 20000/- and interest is 2000 then remaining is principle portion. So, by bifurcating in the Interest certificate in principle and interest the borrower will claim in his return. So 20000 includes both interest and principle.

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Unnikrishnan B

Unnikrishnan B (Expert)
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14 September 2016 Thank you madam for the reply.but madam it is a general reply.but I thank you for replying to my Query

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