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Deduction under 80c

S.Reddy (CA by Qualification) (42 Points)

01 March 2016

Hello Experts, Can we claim deduction under sec 80C regarding the payment of principal portion of housing loan even if the construction of house is not completed.

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11 Replies

CA Raj Doshi (Practising CA) (8898 Points)
Replied 01 March 2016

You may read the sec 80C itself. It is self explanatory.

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Susmita Dutta, CA , CPA (CA ) (2141 Points)
Replied 01 March 2016

Hi,

Deduction under section 80C for repayment of house loan paid in a previous year can only be claimed if construction of the house is completed before the end of previous year.

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 01 March 2016

Hello,

Tax benefit of home loan under section 80C for repayment of principal part of the home loan is allowed only after the construction is complete and the completion certificate has been awarded. No deduction would be allowed under this section for repayment of principal for those years during which the property was under construction

Dkumar (student) (25 Points)
Replied 01 March 2016

Principal paid before completion certificate can be claim after obtaining cert. just like interest in 5 instalments

Dkumar (student) (25 Points)
Replied 01 March 2016

Principal paid before completion certificate can be claim after obtaining cert. just like interest in 5 instalments

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Dkumar (student) (25 Points)
Replied 01 March 2016

Principal paid before completion certificate can be claim after obtaining cert. just like interest in 5 instalments

Rishikesh Mishra (Finance Head) (23 Points)
Replied 01 March 2016

Agreed with Mr. Dkumar

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 02 March 2016

Not agree with Rishikesh & Dkumar...

Principal component of your EMIs paid during prior period is not eligible for any tax deduction.

Yash pundir (coaching) (26 Points)
Replied 02 March 2016

No 'after completing construction if even u pay then u will deducted the principal amt upto 150000'

Yash pundir (coaching) (26 Points)
Replied 02 March 2016

No ' if even u pay principle amt before construction because at that time income under head HP was not be generate' but after completing the construction if even u pay principle amt then u will be deducted the amt upto 150000' Thanku