Tax rebate from salary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2012 Can we take tax rebate from salary.

here is investment details
> Resident Home Loan
1. Principal
2. Interest

Possession not transfer

under section 80C or other 24(b)

Thx

prateek aanchalia

prateek aanchalia (Expert)
Follow

21 May 2012 After possession on ur name u eligible to deduction..
for principal repaid of home loan u/s 80c
for interest on house loan eligible under house property income if u have no other self occupied house otherwise one house known as let house property than u also eligible to get interest amount deduction..

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2012 Sir,

wt about u/s 24(b)?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

26 July 2025 Here’s a clear explanation regarding tax rebates/deductions on home loan repayment from salary income:

---

### 1. **Principal Repayment — Section 80C**

* Deduction for **principal repayment** of home loan can be claimed under **Section 80C**.
* **Condition:** You can claim this deduction **only after possession of the property is transferred to you** (i.e., you become the legal owner).
* Until possession is transferred, **no deduction is allowed** for principal repayment.
* The maximum deduction limit under Section 80C (including other investments like PF, LIC, etc.) is **₹1.5 lakh** per financial year.

---

### 2. **Interest Payment — Section 24(b)**

* Deduction for **interest paid on home loan** is allowed under **Section 24(b)**.
* The property must be either:

* **Self-occupied**, then the maximum deduction allowed is **₹2 lakh per year** on interest paid.
* **Let-out (rented)**, then the actual interest paid can be claimed as deduction (no upper limit, but loss from house property is restricted to ₹2 lakh in a year; the rest can be carried forward).
* **However, for interest deduction to be claimed, possession of the property must be transferred** to you.
* If possession is not yet transferred, no deduction is allowed for interest payment.

---

### 3. **Your Case — Possession not transferred**

* Neither principal repayment nor interest paid is eligible for deduction until **possession** is transferred.
* However, if the loan was taken for **purchase/construction** and the property is not yet ready for possession, some relaxations apply **after completion of construction** (interest paid during construction period can be claimed in five equal installments starting from the year possession is received).

---

### Summary:

| Deduction Type | Section | Condition | Possession Transferred? | Max Deduction Limit |
| -------------- | ------- | --------------------- | ----------------------- | ------------------------------- |
| Principal | 80C | Only after possession | Yes | ₹1.5 lakh (including other 80C) |
| Interest | 24(b) | Only after possession | Yes | ₹2 lakh (self-occupied) |

---

If possession is not transferred yet, no deduction on home loan repayment can be claimed.

---

If you want, I can help you with tax planning once possession is completed. Would you like that?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

tpksathyan narayanan

S D Kannan

ASIM ATREY AND ASSOCIATES

Tanishka Khandelwal

Vimlesh kumar

Subscribe Now

Tax rebate from salary

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA