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Deduction of Principal portion of Residential Home loan

08 June 2020

Suppose I have taken loan for construction of house. Now the house is still under construction and I have started paying EMI's so can I claim principal portion deduction u/s 80C?
If Not, then in section 80C where it is specifically mentioned that construction of house is a precondition for claiming deduction u/s 80C?
Kindly share your views on the same.

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3 Replies

Padmanabhan (Student) (1321 Points)
Replied 08 June 2020

You can avail deduction.

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RAJAT SHARMA (AUDIT ASSISTANT) (179 Points)
Replied 08 June 2020

Yes you can claim deduction u/s 80C for under construction house if you are repaying the loan.
For removal your doubt i clearified that any cost by way of addition , renovation , alteration incurred after issue of completion certificate are not eligible for deduction.

1 Like

ms400708@gmail.com (16 Points)
Replied 08 June 2020

Rajat Sharma Sir
I didn't got your point exactly
Are you trying to tell that if a property is constructed from scrap i.e. there is no addition on already constructed property or there is no renovation on the same, then only loan repayment on the same is eligible for deduction u/s 80C
Is this what you are trying to convey?