repayment of principal loan whether allowable as deduction u/s 80C in case of self occupied property

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CA CS Mohan Kumar B.N. (Querist)
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07 September 2007 Can I claim deduction in respect of principal repayment of loan u/s 80C if I offer the property as self occupied property. Is there any rule that in such case I cannot transfer my property within 3 years. Please reply

CMA Gul S

CMA Gul S (Expert)
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07 September 2007 you can claim the deduction u/s 80 C. if you sell your property for 3 years, the consideraion will be termed as Short term capital gains and also you will not able to get the benefit of section 54F

R.V.RAO

R.V.RAO (Expert)
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07 September 2007 yes .you can claim 80 c benefit even if you self occupy.minimum period of holding 5 years but not 3.it should be residential property.
even you can claim stamp duty and registration cost of acquiring property under 80 c.but principal repayment plus stamp duty plus registration all the sum total not to exceed Rs. one lakh.
THIS IS APART FROM BENEFIT OF INTERSET DEDUCTION UNDER SEC. 24. INTEREST DEDUCTION IS LIMITED TO RS. 1.5 LAKHS PER ANNUM FOR SELF OCCUPIED HOUSE AND UNLIMITED FOR LET OUT PROPERTY .
raovr2001@yahoo.com

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