Tax benefit on house purchase

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Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2010 Is there tax benefit if the house is purchased out of own funds instead of loan?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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17 June 2010 There is benifit only if house is purchased from borrowed funds.

No benefit if house purchased with own funds as per income tax act.

CA Gangadhar Mishra

CA Gangadhar Mishra (Expert)
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17 June 2010 you can claim u/s 80 c up to 1 lakh for investment in house.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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18 June 2010 Dear Ganagdhar
Under Section 80C only stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee,

but shall not include any payment towards or by way of—

(A) the admission fee, cost of share and initial deposit which a shareholder of a company or a member of a co-operative society has to pay for becoming such shareholder or member; or

(B) the cost of any addition or alteration to, or renovation or repair of, the house property which is carried out after the issue of the completion certificate in respect of the house property by the authority competent to issue such certificate or after the house property or any part thereof has either been occupied by the assessee or any other person on his behalf or been let out; or

(C) any expenditure in respect of which deduction is allowable under the provisions of section 24;

The whole amount if exceeds Rs. 100,000/- would be eligible for deduction of Rs. 100,000/- u/s 80C and if the same is less then it will be restricted to the amount spent on above.

CA Gangadhar Mishra

CA Gangadhar Mishra (Expert)
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18 June 2010 Thank you aditya for correcting me.

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