Reverse deductions

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RANDHIR SINGH YADAV

RANDHIR SINGH YADAV (Querist)
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05 March 2012 what is the provison in case of house sale within 5 years and deduction claimed under section 80c

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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05 March 2012 In the year of sale , you may consider the deductions claimed in earlier AYs U/s 80C towards amount repaid as Income from other sources, and have to pay tax on that.

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Example :
Loan Taken in FY 2009-10
Principal Repaid in FY 2009-10 50000
Principal Repaid in FY 2010-11 72500
Principal Repaid in FY 2011-12 120500
till 28.02.2012.
.
1. In AY 2010-11 agaist 50000 suppose Deduction allowed was only 40500, then you have to add 40500.
2. In AY 2011-12 Deduction Allowed 72500.
3. In AY 2012-13 : Do not claim Any Deduction. And Show 40500+72500=113000 as IFOS.

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