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Deduction u/s 80ee

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Sahib Lal

Finance

25 Points Posted on 10 February 2014

Dear Sir/Member,

My query is about deduction u/s 80EE. Detail of case is as under :-

1. Person is not having any House Property on the date of sanction of Housing Loan.

2. Loan sanctioned is Rs. 25,00,000/-

3. Person has applied for LDA (Lucknow Development Authority) Flat.

4. LDA will provide him Flat for Rs. 38.50 Lacs (excluding Registration Charges. It may be 2% to 5% of Rs. 38.50 Lacs)

5. Flat is Under Construction.

6. Registry is still pending.

Query:-

1. Whether Registration charges will be included in value of House Property for the purpose of section 80EE?

2. Deduction u/s 80EE can be given without "Possession of HP" or not?

3. Registry is compulsory or not, for availing deduction u/s 80EE?

Please provide your valuable suggestions, thanks in advance.

Replies (1)

Saleem Abdul

397 Points Posted on 12 February 2014

1) yes. Registration charges will be included in the value of property. So in this case Sec.80EE will not be applicable.

2) For claiming deduction U/s 80EE possession is not mandatory. If you have ownership right that is sufficient.

3) Though there is no specific clarification in regard to registration, it seems that registration is mandatory to avail deduction under this section.If there is any delay in registration you can claim deduction of 1lac even in the following assessment year.