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Home loan, principal amount and interest deduction

Priyanka Meena (5 Points)

01 August 2021

can do borrowers claim separate deduction under section 24 and 80C?

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Ankit Neema (2742 Points)
Replied 01 August 2021

Section 24 is for interest paid on home loan and in 80C you can claim deduction of Principal

Priyanka Meena (5 Points)
Replied 01 August 2021

My query is, can co-borrowers claim separate deduction on home loan under section 24 and 80C of the Act?

Ankit Neema (2742 Points)
Replied 01 August 2021

Yes they can claim

Priyanka Meena (5 Points)
Replied 01 August 2021

If the coborrowers apply for home loan in FY 2021-22 for purchasing plot and construction of house property and they complete the construction within 5 years of purchasing the property.
in aforementioned scenario from when the coborrowers will be eligible to claim deduction and in what ratio?

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 01 August 2021

Yes interest on loan should be claimed under section 24(b) and principal amount should be claimed under section 80C

Ankit Neema (2742 Points)
Replied 01 August 2021

Deductions of home loan is allowed from the year in which the construction is completed, preconstruction period interest is allowed in 5 equal installments

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