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Regarding deduction u/s 80c

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PRATIK LOHIA (Querist)

27 December 2012 Dear Sir,
I want to ask whether deduction in respect repayment of housing loan which is taken for construction of house and as the loan taken on i.e. starting of pre construction period, & for which interest is allowable u/s 24B of house Property which is allowed for 5 years after period is over but what for repayment amount which is paid during that pre- construction, that paid amount is allowable under Section 80C or not ???

SANJAY TALATI

SANJAY TALATI (Expert)

28 December 2012 Sec. 80 C provides for the deduction in respect of the payment/ repayment by individual, HUF for the purchase or construction of residential house property to Central Govt, State Govt, Bank, LIC , National HSG.Bank etc.

So far as the interest for the pre construction period is concerned , it is avaibale as deduction u/s 24(b) in five equal annual instalment.

Sec. 80 C does not prescribe any condition of the pre construction or post construction repayment of the HSG. Loan principal. Hence, the deduction u/s 80 C is avaibale in respect of the repayment of the principal even for the pre construction period.

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