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)
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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..

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Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2012 Sir,

wt about u/s 24(b)?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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26 July 2025 Here’s a clear explanation regarding tax rebates/deductions on home loan repayment from salary income:

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### 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.

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### 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.

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### 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).

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### 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) |

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

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

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