Deduction for housing loan principal payment and pre emi

Tax queries 441 views 5 replies

mahendra

Manager

26 Points Posted on 29 January 2016

I want to know the tax computation with following situtation

i) owning 1 house (A) with Pre EMI interest paid rs. 66,000

for current FY principle payment rs.150000

(Query : where and how to avail Pre emi interest should be claimed for tax calculation.)

ii) incontinuation with above what if 1 more house (B) has bought and

for current FY principle payment for House A is rs 100,000 and for House B rs 50,000

can we claim both amounts under section 80C

Replies (5)

CA Mehul Chudasama

Chartered Accountant

618 Points Posted on 29 January 2016

Pre EMI Interest alos allowed deduction U/s 24B over period of 5 Years in 1/5th Installment.

if you are purchased 2nd House Then You Can claim both the principal repayment u/s 80 but the same time 1 house is deedmed to be let out property and you have to consider notional income from house property while calculating your total income

Vishal Goel

Chartered Accountant

1693 Points Posted on 30 January 2016

Agree with Mehul

In case 1 : The Interest that has been paid before the completion of construction should be aggregated and the whole aggregated amount shall be allowed as tax deduction in 5 equal installments for 5 successive Financial Years starting from the year in which the construction has been completed.

The pre-construction interest is allowed upto a limit of Rs 2 Lakhs including the current year interest payment on home loan. This can be claimed only after the house is ready and possession is taken over.

mahendra

Manager

26 Points Posted on 30 January 2016

Thanks Guys

mahendra

Manager

26 Points Posted on 01 February 2016

Hi Thanks for replying,

I have additional query for the same.

I have Pre EMI to be claimbed in FY 2015-15 as Rs 16,000

From home loan for current fiscal I have paid Rs. 1,40,000 as interest and Rs3,60,000 as Principle payment.

I want to calculate Income/(Loss) from house property-

Can I show Income/(Loss) from house property as (16,000+140000 = 1,56,000) or

Only i have option to show Rs 16,000 under Income/(Loss) from house property

Section 24 of Income Tax Act (After amendment as per Finance bill 2 of 2014

Vishal Goel

Chartered Accountant

1693 Points Posted on 02 February 2016

Hello, As I already mentioned that The pre-construction interest is allowed upto a limit of Rs 2 Lakhs including the current year interest payment on home loan.

In your case
1/5 pre construction interest is 16000
Current year interest payment is 140000

At the time of calculation income form house property claim 156000 as interest payment...